The 10-bedroom, Grade II-listed Hipping Hall in Cumbria will reveal a £250,000 expansion later this month, with the introduction of five new bedrooms.
Located within former stables adjacent to the main hotel, the new development will take the room count of the hotel up to 15, enabling the hotel to cater for larger weddings and corporate events.
Owner Andrew Wildsmith, who also runs the Ryebeck in Bowness and the Forest Side hotel in Grasmere, said: "With confidence in the economy on the up, the leisure and tourism sector has seen a heady recovery so business in the Lake District is booming.
"Since opening the hotel ten years ago, we've maintained high occupancy levels and demand continues to grow so it makes good business sense to invest in the extension and expand the business."
Richard Parker, a director at Harrison Pitt Architects, which has overseen the project said: "We've worked on a number of projects at Hipping Hall, including the original upgrade works to the historic building in 2005, and more recently the addition of a conservatory and luxury suite, so the new works will fit in with the look and feel of the hotel."