Grantley Hall in Ripon, North Yorkshire has been given the prestigious ranking by Luxury Travel Intelligence.
It was only beaten to the top spot by The Nautilus in the Maldives.
Speaking about Grantley Hall - a luxury hotel and wellness retreat - Luxury Travel Intelligence said: "While the world's most respected luxury hotel brands continue to bring us amazing new properties every year, it is individual passion projects such as Grantley Hall that invariably capture our interest (and hearts).
"What we anticipated to be a routine visit to yet another new UK country house hotel, turned out to be a total revelation.
"We could go on forever about all the wonderful things we found, but you should go and discover this exceptional property for yourself. You will not be disappointed."
Other establishments to make the top 12 best luxury hotels in the world include: The Oberoi in Marrakech, Aman Kyoto, Waldorf Astoria Maldives, Stock Exchange Manchester, The Newt in Somerset, Hotel Château du Grand-Lucé Loire Valley, St Regis in Venice, Mandarin Oriental Jumeria Dubai, The Lodge at Blue Sky Utah, Rosewood in Hong Kong, the InterContinental Maldives and the Singita Kwitonda Lodge in Rwanda.