The historic Minerva Hotel, due to celebrate its 200th birthday next year, has welcomed countless visitors over the years with its reputation for good food and beer and panoramic views of the Humber estuary.

But its owners, the Wiltshire-based company TCG Acquisitions Ltd, called time on the Minerva last week, saying it was no longer a "sustainable business".

However, a protest led by the Hull and East Riding branch of the Campaign for Real Ale (CAMRA) has forced a rethink, and the firm has granted the Minerva a stay of execution.

Branch chairman Alan Canvess said: "We are delighted the company has listened to what we said and they are now going to keep it open for three to four months. I'm going to meet the operations manager again soon and we are hoping to persuade them not to close it at all.

"I have some sympathy as regards their problems with trade, which has not been helped by the closure of (nearby pubs) the Oberon and the Heritage, although the Heritage will open again soon."

He added: "The Minerva is a tremendous amenity for that area of the city and if you are walking along the waterfront it's a fantastic place to call in for a beer or a good meal. We always say to people about pubs, 'Use them or lose them', and we want to encourage people to go down there."

Named after a frigate once commanded by Lord Nelson, the Minerva is something of a shrine to naval traditions and seafaring.

One of the first things to catch the eye on entering the attractive bar is a brass plaque commemorating Nelson's stirring signal to the British fleet as it prepared to engage combined French and Spanish forces at the Battle of Trafalgar: "England expects that every man will do his duty."

Also mounted on the walls are the insignia of other British vessels, including HMS Iron Duke – the Royal Navy Type 23 frigate affiliated to the city – and HMS Jupiter, while another plaque commemorates British Forces, Falkland Islands.

The pub also displays maritime relics, from the head of a harpoon found in South Georgia in the southern Atlantic to a porthole recovered from 600ft of sea water from the wreck of the Royal Mail ship Arabic II, which sank in the Irish Sea in 1917.

Landlord Tony Roberts, who took over the pub seven months ago, said he was "delighted" by the reprieve.

He blamed the smoking ban as one of the main reasons behind a drop in trade, although he hoped the reintroduction of Tetley beer would tempt many drinkers back.

He said: "The smoking ban has affected us very badly. I smoke and I could go upstairs but when my customers are standing outside I think it's right I show a bit of solidarity. But you can't stand out there when there's an easterly blowing."

He added: "It was always known as a Tetley's pub but it stopped selling Tetley's. I've fought to get it back and we are now the only pub in our company selling Tetley's, which I consider an achievement."

The company's plan now is to mothball the pub at the end of September with the intention of reopening in Easter 2009 - just in time for the pub's bicentenary.

One event the Minerva will be able to cash in on is the Clipper Round the World Yacht Race which will have Hull as its host port in 2009-10. The 10-strong fleet of yachts berthed in Hull Marina for 10 days in September 2009.

The operations manager at TCG, Ross Dick-Cleland, said: "I would like to take this opportunity to thank our customers who have been so vocal and positive in their support for the Minerva over the past two weeks, and look forward to their enjoying our hospitality in the summer."