The work to create a hotel, featuring 13 stylish and individually designed bedrooms, as well as a penthouse suite, residents lounge, function room and two meeting rooms, is due to be finished in early summer.
Established in 1827, Theakstons has been operating as an independent brewer since the Theakston family regained control of the company in 2003 and is one of the few brewers in the country that still employs a cooper crafting wooden casks.
NatWest has provided financial support for the property conversion, with their team in Yorkshire providing support for both the working capital and property development cost of the project.
Simon Theakston, Managing Director of Theakstons, said: "Theakstons has been established for many years and we are proud of its rich heritage. The new hotel premises at White Bear will fit well with the company's hospitality vision, and the location is perfect for the flourishing tourist trade."
Craig Bebbington, Relationship Director, Corporate Banking at NatWest, said: "Theakstons is a very well known name in the ale industry and they have a strong and durable reputation. They have chosen the location of their new hotel wisely, benefiting from the existing White Bear premises as well as the close proximity of the Theakstons Brewery, a popular tourist haunt."