It is believed to be the first purpose-built hotel to open in Bridlington for more than 80 years.
On Monday, the £1m building welcomed its first guests, just six months after work began on the project next to the Lobster Pot pub in Kingsgate.
Owned by Marston’s Inns, it has created 10 new jobs and opened its doors just in time for one of the town’s biggest events.
The hotel began taking bookings four weeks ago and all its 27 of its rooms for Bridlington Scooter Weekend were snapped up within five hours.
General managers Dave and Sheila Riel invited Coun Liam Dealtry, mayor of Bridlington, to cut the ribbon on Monday morning.
“It looks stunning, it is high quality and is just what Bridlington needs,” said Dave.
“It is ideal for people who want somewhere for an overnight stay, or families who are visiting relatives in the town.
“This has been a long time coming and it has been on the cards for four years, since we opened the pub.”
He said the hotel was already proving to be popular with people who are coming to Bridlington to see gigs and shows at The Spa, and as part of a golf package linked to the local courses.
Coun Dealtry was invited to stay overnight at the hotel at the weekend, as part of a trial run before it officially opened.
He said: “It is absolutely fantastic. It will be ideal for people coming to Bridlington to stay for one or two nights, maybe if they are coming to a concert.
“It is just what Bridlington needs, in my opinion, and it will complement what we already have in the town, in terms of guest houses and B&Bs.
“It is everything I expected and more, and it gives our visitors more choice.”
The hotel has 27 rooms, including nine family rooms. Two of the rooms have been adapted to make them accessible for wheelchair users.
Guests enjoy free wi-fi, free parking and free breakfasts.