Splendid Hospitality Group-owned five-star venue, Grand Hotel & Spa is to invest £15m in the expansion, with the creation of 45 jobs, and 107 new rooms.
Plans have now been submitted to City of York Council for a two-year renovation project, which also includes upgrading rooms in the existing hotel, converting the former offices block into a new wing creating 107 executive suites.
The scheme also includes a new 160-seater restaurant with outdoor terrace and a valet parking area with space for up to 15 vehicles.