A listed building in Whitby is to be given a new lease of life when it is transformed into a £2m youth hostel.
It is hoped the hostel will attract more tourists to Whitby
Abbey House, a Grade I building, will be developed into a 100-bed hostel with bar, restaurant, conference facilities and tea rooms.
The hostel, next to the ruins of Whitby Abbey, is set to open in autumn 2006.
It is hoped the site, funded by the Heritage Lottery Fund and European Regional Development Fund, will become one of Yorkshire's busiest hostels.
The Youth Hostel Association (YHA) plans to remove alterations carried out to the building in the early 1980s.
The surrounding Grade II listed gardens will also be restored.
Fiona Spiers, Heritage Lottery Fund manager for Yorkshire and the Humber, said: "It is great to see that such an historic building will be restored and once again full of life with its proud heritage opened up for everyone to enjoy.
"This is another example of how heritage continues to play an important role in our lives and is still popular."
YHA spokesman Simon Ainley said: "The anticipated number of visitors to the new youth hostel will provide a significant boost to the local economy, providing employment opportunities and increased spending in the local community.
"A stay at Abbey House will be a truly unique experience and will add to our already diverse network of properties in North Yorkshire."