A YORK hotel is to close and is set to be converted back into two family homes.

The Mount Royale Hotel in The Mount, which will shut at the end of the month, has been bought by the Oakgate Group, which plans to convert the Grade 2 Listed buildings back into two grand family villas.

It says it will restore them to their former glory and re-establish the original house names of Daresbury and Beech.

The Wetherby-based firm, part of the Caddick Group, will be submitting a planning application shortly for a change of use of the buildings.

"This will include the complete removal of the modern extensions at the rear and side together with the removal of front parking and reinstatement of the gardens," said a spokesman.

"Planning permission already exists for two new residential properties in the grounds at the rear of the hotel, which was granted in January this year."

He said the property had been in the Oxtoby family since 1967, when 119 The Mount was converted into a hotel, before it was expanded to include 117 and 119 The Mount in 1978.

"It was opened by Richard and Christine Oxtoby, whose hard work and determination transformed the building into a wonderful hotel,"he said.

"The Grade II buildings were originally built in 1834 as grand villas and the current use as a hotel will cease at the end of April."

Stuart Oxtoby said: “Unfortunately, running a 24 bedroom hotel in 188 year old listed buildings is no longer viable.

"The hundreds of new hotel bedrooms that have been built in the city over recent years has substantially changed the hotel market in York.

“It is therefore with great sadness that we are closing this family business but we are confident that Oakgate will secure the future of these important buildings and breathe new life into them for many decades to come.

"Maintaining these buildings in their current use is unfortunately no longer viable.

“On behalf of Christine, Karen and myself, I would like to thank all of our loyal guests over the years and say a special thank you to all the wonderful staff members who truly made it a special place.”

Richard France, managing director of Oakgate, said: “It is always sad when an institution such as The Mount Royale Hotel comes to the end of its economic life.

"I`m pleased however that we are taking on the responsibility of ensuring that fabric of the buildings can, with care, be given a new lease of life, albeit that we will be restoring the buildings back to their original residential uses.”