Tavistock Leisure has invested £150,000 to turn the living quarters at The Lambton Worm in Durham into a B&B, due to open in April.
The 12 en-suire rooms, and two larger suites with en suite baths, will be individually decorated, featuring mahogany rococo furniture.
The leisure firm bought the pub in 2012 and relaunched it following a £500,000 renovation, saving it from closure.
Coxhoe-based micro-brewery Sonnet 43 currently operates the pub, serving craft beers and a selection of British food.
Tavistock Leisure and Sonnet 43 managing director Mark Hird said: “By diversifying from a brewery tap to a boutique bed and breakfast we hope to maximise this opportunity and appeal to a local, national and international clientele”.