Hotel Majestic, in Northstead Manor Drive, and Headlands Hotel, in Weydale Avenue, are up for grabs after both sets of owners announced their departures.

The owner of Hotel Majestic is retiring after running the business for nearly 20 years. The Headlands' owner is moving on to undertake other projects.

David Jeffels, Scarborough Council's cabinet member for tourism and culture, said: "There is no better time than now to buy a hotel in Scarborough.

"With the current economic climate people are tending not to travel abroad for their holidays but instead staying in this country and more and more people are coming to Scarborough."

Hotel Majestic is on the market for £695,000 and Headlands is on for £599,000.

Both properties are being sold by business agents Christie and Co.

Christine Cody-Owen, from the Leeds-based, company, said: "The current owners of Hotel Majestic have operated the business for the past 18 years and during this time have extensively improved the property.

"They provide an excellent bed-and- breakfast business with optional evening meals and they have built up a wonderful reputation for the quality of their hospitality but feel that now is the time to retire."

She added: "The already popular area of Scarborough is the subject of significant investment and, coupled with the conference centre, means that the Headlands Hotel benefits from several income streams."

Cllr Jeffels said the North Bay would be an ideal place to buy a hotel.

He said: "North Bay is becoming more and more popular, what with the Sands development and the developments going on at Peasholm. The hotels are in great spots and I am confident they will be snapped up fast."