Businessman Malcolm Weaving has placed the majority of the 80 staff at The Rendezvous Hotel in Skipton on furlough after around 3,500 bookings were cancelled as a result of the crisis, resulting in £447,000 in lost revenue.
He said he is taking out a £350,000 bank loan to cover costs in the expectation the hotel will not be able to reopen for six months.
The hotel has also had to delay the launch of its new venture, a canal dining boat called Graceful Swan capable of serving over 50 customers at a time.
Mr Weaving said: “It's been the biggest commercial challenge we've ever faced. Nonetheless my true Yorkshire spirit is adamant we must keep the momentum going and prepare ourselves for when this war against the virus has been won.
"Our motto is ‘never bend down without picking something up’. We want to come out of this lockdown with new ideas.
"When things reopen it will be boom time because people are not going to want to go abroad or on cruise ships - they will go on staycations because everybody will want a holiday after this.
"I think things will come back with a vengeance. We will be coming out of this like a dog coming out of Trap One.”
It comes after holiday rental marketplace company Snaptrip said the Yorkshire Dales has been the third-most searched-for destination for Brits in lockdown, behind the Scottish Highlands and Snowdonia.
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