A successful Conwy inn has opened an additional luxury boutique guesthouse in a former chapel, after receiving six-figure funding.

The Chapel or ‘Y Capel’ has opened opposite The Erskine Arms on Rose Hill Street after pub owners Stange & Co secured a £550,000 funding package from NatWest.

The funding has supported 18 months of renovations to transform the Grade II listed building into an 11-bedroom guesthouse, complete with communal kitchen and lounge area.

The Chapel, which has been derelict since the 1970s, will be operated from The Erskine Arms and five new employees have been brought in to run the operation.

Stange & Co runs nine other pubs across North Wales and the Wirral. It has owned the listed chapel for over 30 years but decided to turn it into a guesthouse following the success of The Erskine Arms.

The traditional Georgian coaching inn underwent extensive renovations in 2016 and 2017, helping it grow from a business with four employees in 2015 to 40 employees by 2019 with a significant turnover increase of several hundred percent.

The inn currently has 10 boutique bedrooms situated above the pub and a bar and restaurant area, serving locally-sourced food and a selection of local beers, wines and gins.

Dan McLennan, managing director of Stange & Co, said: “North Wales is going through a bit of a renaissance at the moment. Conwy in particular has become a hub for tourists and foodies, as well as those who want to explore Snowdonia.

“We’ve owned The Chapel for a number of years and after seeing the amazing growth at The Erskine Arms, it made perfect sense for us to transform the site into a luxury guesthouse. With the support from NatWest, we were able to open just before Christmas.”

Ruth Kirby, NatWest senior relationship manager, said: “Stange & Co is a family-run business that’s shown it’s capable of continued growth. The owners are able to spot gaps in the market and act on them, so I’m sure The Chapel will be another huge success for their portfolio. Good luck to all the team.”