Colin and Sharon Marsh, owners of both the St Denys and Blue Bridge in York, have laid out hundreds of thousands of pounds on upgrading the two hotels.

Now they are setting their sights on the Small Business of the Year title sponsored by Barclays Bank.

The 13-bedroom St Denys, in St Denys Road, bought in February, 1998, was so successful that last January they bought the Blue Bridge Hotel in Fishergate and launched a £500,000 expansion programme. It was reopened with a full service franchisee restaurant and plans are under way to extend into an empty neighbouring house remodelled into three four-poster executive suites, two of which are up and running. Given planning consent they will add six or seven rooms to the existing 16, all but one of which are en suite. On the couple's payroll over the two hotels are 25 staff - an increase since their arrival of nine people.