A major Scarborough hotel is to be transformed into holiday flats now it has been sold for £2million.

Watling Real Estate has sold the Ambassador Hotel & The Beach Rooms on Scarborough’s Esplanade and overlooks the North Sea.

The 57-bed Victorian hotel with outstanding views of the bay went into receivership in March 2023 and in March 2024 Andrew Foster and Chris Walker in Watling’s Leeds office were appointed as Law of Property Act receivers.

Hull-based Urbanwave Developments Ltd have bought the venue for £2million and they plan to continue and expand on the renovations the previous owner had begun.

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Alex Sweetman, a director in Watling Real Estate’s Leeds office, said: “Urbanwave will be converting the hotel into around 20 trendy, surf shack-style, self-contained units targeting the holiday maker market.

“What makes The Ambassador so special is the outstanding views. The south bay of Scarborough is the prime end of town, and the hotel is on the first terrace set back from the cliff. It has great views over Scarborough, the harbour and the castle in the background.”

(Image: Supplied)

In its original format, The Ambassador Hotel comprised of a 57 bedroom, all en-suite, property over circa 26,000 sq ft, with spa facilities including a heated swimming pool, sauna, mud room, together with a function room/lounge/bar area.

Mr Sweetman said: “The Ambassador is a well known landmark building which has hosted many weddings and celebrations over the years, with a circa 2,300 sq ft function room at lower ground level, together with a lounge bar area of around 2,500 sq ft at ground floor level which has exquisite coastal views from the beautiful bay windows.

The sea view from the hotelThe sea view from the hotel (Image: Supplied)

“Under new ownership it can be reborn as a major part of the Scarborough hospitality market, and we are very pleased to have achieved a sale to Urbanwave.”

The receivers were advised by law firm Walker Morris in Leeds with lawyers Gosschalks in Hull acting for Urbanwave.