North Wales developer Coastal & Country Developments has been given planning permission by Conwy council to convert and extend a grade II-listed building in North Wales.
The Deganwy Castle Hotel has been vacant for a number of years and fallen into significant disrepair.
Steve Ratcliffe, managing director of Coastal & Country, said: "The Deganwy Castle Hotel is an important listed building in a unique setting in Deganwy. Since its Victorian heyday, it has been a focal point of the community and a landmark tourist destination. We are confident that the new development will re-establish the hotel's role as an important part of Deganwy for years to come."
Manchester-based planning and development consultancy Hourigan Connolly led negotiations with the council and local stakeholders.
Daniel Connolly, director of Hourigan Connolly, said: "The plans for redevelopment are the result of significant consultation with officers and the local community and involve the conversion of part of the building back into a prestigious, boutique hotel which will be accompanied by a high quality restaurant and public bar. The remainder of the building will be converted and extended to provide one and two-bedroom apartments with associated car parking and landscaping.
"The scheme will secure the long term future of a statutory listed building in a sympathetic manner, whilst making an important contribution to regeneration, housing, economic and community priorities."
The architects were Colwyn Bay based Bowen Dann Knox.
The developers started on site this week and hope to complete with 18 months.
Meanwhile, Hourigan Connolly announced the appointment of Manchester University graduate Tom Mulderrig as an assistant planner.