A FORMER Grade II listed hotel in York has been transformed at a cost of £1.25 million into short-term let luxury apartments.

The 24-room Ambassador Hotel on The Mount, once a Georgian town house set in a 1.5-acre of garden, was last year turned into two townhouses and eight apartments.

One of the townhouses has been let, while the other was sold, along with two of the apartments.

The remaining six one and two-bedroom apartments are now being marketed for short-term lets, ranging from £850 to £1,995 per month.

The apartments, which are being rented at day rates, holiday rates or on short-term basis, have been developed by Places For People, the umbrella group for North British Housing, one of the biggest housing associations in Britain, with 56,000 properties in its portfolio.

The accommodation is being managed by North British Housing's sister company, Blueroom Properties, which reports three of the apartments have now been let on longer term rents - one to the employee of a top firm who is on a six months' contract and two to York people.

The remaining three will be available for short-term stays, "anything from one night upwards", said Anne Rupert, commercial officer for Blueroom Properties.

She said it would be a good location for employees on training courses or meetings who need overnight stays.

Ms Rupert said the money made from this venture would be pumped into the coffers of North British Housing, which is a "not for dividend" company.

"So it will go back into social housing, sheltered schemes and homes to give independent living to people with mobility problems."

She said: "We have asked the Visit Britain tourism officials to inspect the apartments in the hope that they will give them a five-star rating.

"Each apartment contains a kitchen, lounge bedroom and bathroom and is fully-equipped with modern furnishings and accessories, down to the corkscrew.

"They are completely ready to move in the moment contracts are signed."

Updated: 11:35 Tuesday, January 31, 2006