Wrea Head Holiday Cottages, Scalby, which has sea views over Scarborough Castle, has been acquired as a partnership between two families who aim to make it a destination for environmentally-conscious tourists wishing to reduce their carbon footprint.
The 3.5-acre complex comprises a farmhouse, the living accommodation of new owners Rob and Tracy Lawty, their two children Abigail, 17, and Jack, 13, and business partners and in-laws, Joy and Richard Scales; farm buildings converted into nine holiday cottages, an indoor swimming pool, jacuzzi, sauna, gardens with a barbecue and two play areas for children.
Acquisition funding from Yorkshire Bank's York Financial Solutions Centre (FSC), enabled the two families to acquire the complex, which had a £1.6m asking price, from a local businessman.
They are to run the complex as an extended family with the two wives running reception; Richard Scales, a former accountant, taking charge of finances, Abigail and Jack helping with cleaning and rearing free-range hens to sell eggs, and their own home-grown organic vegetables, to guests.
The deal was finally signed off as climate change and development protestors moved into Heathrow Airport to protest against runway extensions.
Rob Lawty, 42, says: "We aim to help to encourage a return to traditional British seaside holidays as environmental concerns mean that more people are going to choose to take their breaks in the UK.
"Scarborough was a major holiday destination until people started jetting abroad in the 1970s often without appreciating the natural beauty and quality of facilities on their doorstep.
"The east coast has suffered in consequence but we, and others, believe that it is about to enjoy a renaissance and we aim to offer high-quality accommodation and service so we can contribute to this."
Wrea Head Holiday Cottages was created as a farm diversification in the 1990s. The new owners have acquired it with bookings from as far away as Belgium running into next year.