The directors of 62 Castle Street in Liverpool have announced the hotel will not be reopening once government restrictions on coronavirus are lifted.
In a statement, the board of directors of owner Best Issue said the 20-bedroom hotel will "struggle to recover as quickly as some of the other larger internationally branded hotels" in the city centre.
This, combined with high financial uncertainty and increased competition in the Liverpool hotel market, has led the board to decide not to reopen the property.
The directors said: "We would like to thank the fantastic hotel team and the loyal guests of the hotel for their words of support and their efforts in establishing 62 Castle St as one of the city's most loved and respected hotels."
Designed by the Lucy and Little, the Grade II-listed building started life in 1868 as the Alliance Bank, then the North & South Wales Bank, before being converted into a hotel.