The ongoing project at the Ythan Hotel on Main Street in Newburgh was detailed yesterday by Punch Taverns and Mr Young. The Ythan Hotel is being renamed as the Newburgh Inn, and is due to re-open in mid-April.
Mr Young already operates the Mains of Scotstown Inn and the White Cockade in Aberdeen.
The Newburgh Inn's restaurant will focus on locally-sourced food, and cater for families. The number of bedrooms is being increased to 11.
Mr Young said the decoration would be typical of a country inn, and the hotel would be eco-friendly.
Punch Taverns flagged the aim of creating a "boutique" hotel, which would attract business travellers, tourists and golfers, as well as locals.
Mr Young said: "The plans look fantastic. We will be offering the community something different and a range of facilities to suit all. We have already taken on five new members of staff and will look to take on 15 more. I look forward to seeing the end result."
Gavin Stevenson, senior partnership development manager at Punch Taverns, said: "We are excited about joining forces with Martin to deliver such a transformational investment to the Newburgh Inn, and create so many new jobs in the local area."
He added: "We will reposition the new-look Newburgh Inn as one of the leading boutique hotels in the area."