AT the time it was built in 1878 - a year after York Railway Station was completed - the Royal York Hotel was built to accommodate the aristocracy of the north as well as wealthy Yorkshire industrialists.

It had 55 bedrooms then, and today there are 167, but the regal comfort in that five-storey building is everywhere, from elegant banqueting rooms to its magnificent lounge and staircase.

Only now it has a health and fitness club - with swimming pool, sauna, spa, steam room, solarium and comprehensively equipped gymnasium - with Tempus Bar and the recently launched Tempus Restaurant, all of which have been the subject of a £7 million refurbishment. Sixty more bedrooms are to be revamped next year.

It also has a sleek conference and events centre capable of accommodating 410 delegates Ownership has changed hands many times, including when it was nationalised in 1948 and run by British Transport Hotels Limited, a subsidiary of British Rail, and later became part of the French Le Meridien Group.

Three years ago, the Bank of Scotland took what had become Le Meridien York out of the company's portfolio and re-established Principal Hotels to run it under its traditional name. It is now the group's flagship hotel.

Maintaining those high standards has also meant making a huge investment in the hotel's 185 staff, which is why the Royal York is also entering the Progress Through People category.

In June, the hotel launched its "training and communications room", where employees use computerised training packages to enhance customer service.

"Quality winners" are chosen every month. Talent is quickly recognised.