The Ox Pasture Hall Hotel in Lady Edith's Drive has received planning permission from the North York Moors National Park Authority to expand the hotel with a development of 11 luxury suites.

The scheme is expected to create 14 new jobs.

The £1 million development will be constructed around a new second courtyard with the new building designed to reflect the property's agricultural history.

The suites will have one or two bedrooms with lounge accommodation and each will have a luxury bathroom with walk-in showers, large feature baths and natural stone tiles.

Manager Nick Nasser said: "The aim is to create Scarborough's first deluxe boutique hotel.

"We hope to attract a new type of customer who appreciates walking, the countryside and admiring the magnificent scenery of the North York Moors National Park – the sort of customer who traditionally has chosen the Lake District over the North York Moors and Scarborough."

The new development follows on from the construction of a £300,000 kitchen, bedroom refurbishment and new restaurant at the hotel, which was the only one in Scarborough to be featured in this year's edition of the AA guide to Britain's Best Hotels.

Mr Nasser added: "We're only into our second year of running the hotel and things are moving very quickly – now we're moving to the next level.

"We believe very strongly that Scarborough is ready for this sort of luxury accommodation.

"We're confident for the future – we've already noticed that more people are staying in the UK for their holiday this year – we're very optimistic about Scarborough's future as a tourist centre."