The family-run Royal Hotel in Llandudno has gone into administration.
The business, in Church Walks, has been closed while administrators Begbies Traynor consider the best future for the hotel.
John Kelly and Nigel Price, from the Birmingham office of the business recovery specialist, were appointed joint administrators to the trading company Royal Hotel (Llandudno) on 25 March after the hotel fell behind with loan payments and obligations to other creditors.
Everyone who has booked accommodation at the hotel has been advised of the closure.
Kelly said: "Like many hotels, the Royal has struggled during the longest recession period in living memory and has sought to survive by subscribing to a variety of ‘voucher schemes'. As a result, from an administration perspective it made sense to close the hotel as future residents using vouchers would not pay for their accommodation and as a result there would be no funds to cover the costs of trading.
"Everyone who has booked is being advised of the closure and anyone who has paid for vouchers should approach the voucher company they have used direct."