Scarborough’s Ambassador Hotel fetches £2m

Appointed as Law of Property Act receivers in March, Watling Real Estate has sold the property for £2m to Urbanwave Developments.

The Ambassador Hotel & The Beach Rooms went into receivership in 2023 and in March this year Andrew Foster and Chris Walker in Watling’s Leeds office were appointed as LPA receivers by Together Commercial Finance.

Regional investor Urbanwave plans to continue and expand on the renovations the previous owner had begun. The hotel is Victorian, historically had 57 guest rooms and overlooks South Bay.

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.”

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

Sweetman continued: “The Ambassador is a well known landmark building which has hosted many weddings and celebrations over the years, with a 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.

“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.”

Watling Street was advised by law firm Walker Morris, with Hull firm Gosschalks representing Brough-registered Urbanwave.