The Marine and its seafood restaurant Moon and Sixpence will no longer take bookings.
The Victorian hotel on Marine Parade, which is renowned for its harbour views, includes a Grade II-listed rear facade which dates back to the 16th century, making it one of Whitby's oldest buildings.
The current owners have run the business since 2008, offering four guest suites as well as a bar and brasserie serving locally-caught seafood.
A statement on the hotel's website read: " With great regret we can confirm that we will be closing the doors of the Marine and Moon and Sixpence for good, today.
"The devastating economic effect of Covid-19 has brought us to this unfortunate conclusion despite our best efforts to protect the business and the employees. We will not therefore be able to honour any pre-booked accommodation or table bookings and are sadly unable to issue deposit refunds. You may be able to claim deposits back via your credit card provider or through any holiday insurance cover you may hold.
"We would like to take this opportunity to offer our sincere apologies and thank you for your custom over the last 14 years."
Serving oysters, caviar and local lobster, the menu was described as 'the most ambitious in Whitby' when a Yorkshire Post food writer reviewed Moon and Sixpence in 2016.