The Dean Court Hotel in Duncombe Place, opposite the Minster, has gained a star.
Its 50 staff are celebrating the fact that the AA has pushed up the hotel's grading from three stars to four stars.
An anonymous inspection recognised the more than £2.5 million worth of investment over the past four years to improve facilities. All public areas and guest rooms were refurbished and a new café bistro was created. A separate entrance was designed for the restaurant which three years ago was relaunched under the name DCH.
David Brooks, general manager said: "We're all very thrilled especially as for a fifth consecutive year the AA also confirmed the retention of a two-rosette award for the food and service in DCH, making it the only two-rosette restaurant within the city walls."
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