Gwrych Castle was erected between 1819 and 1825 at the behest of Lloyd Hesketh Bamford-Hesketh, grandfather of Winifred Cochrane, Countess of Dundonald. From 1894 until 1924, when the Countess died, it was the residence of the Dundonald family. The Countess left the castle in her will to King George V and the then Prince of Wales (who later became King Edward VIII). However, the gift was refused and the castle passed to the Venerable Order of Saint John. In 1928, the Earl of Dundonald purchased the castle for £78,000, selling the contents to meet the cost.
During World War II, the Government used the castle to house 200 Jewish refugees run by the Jewish Zionist youth movement Bnei Akiva. Following the war, the castle left the Dundonald family and was open to the public for twenty years. It was called The Showpiece of Wales at this time, and attracted many visitors. It was also used as a training venue for the English World Middleweight boxing champion Randy Turpin in the early 1950s. In the early 60s it was an occasional venue for the famous motorcycle dragon rally and in the 70s it was used as a centre for medieval re-enactments, attracting tourists with such events as jousting and mock banquets.
The castle was last open to the public in 1985. Thereafter, it started to decline. It was bought in 1989 by an American businessman (Nick Tavaglione) for £750,000. However, his plans to renovate the building were not carried out. As a result, the castle was extensively looted and vandalised, becoming little more than a derelict shell, although it was used in 1996 as the backdrop for Prince Valiant, a film starring Edward Fox, Joanna Lumley and Katherine Heigl.
During the period of Tavaglione's ownership, historian Mark Baker campaigned for the castle to be brought back to its days of glory—a campaign that he started when he was twelve years old. Baker was instrumental in forming the Gwrych Castle Preservation Trust, dedicated to ensuring the castle's future. The condition of the property was monitored by the Trust, who lobbied Conwy council to compulsorily purchase the property, eventually placing enough pressure on the American owner, who put it up for sale in March 2006.
City Services Ltd, trading as Clayton Homes and Clayton Hotels, bought the castle in January 2007 for £850,000, after it failed to reach its £1.5m reserve price at the 2 June 2006 auction. On 30 April 2007, Clayton Hotels announced a 3-year project, costing £6,000,000, to renovate the castle and convert it into a 90-bedroom 5-star hotel, creating 100 jobs. The project was subject to planning permission, but had the support of the Trust. Clayton Hotels spent about half a million pounds on its plans, clearing the site and rebuilding areas. City Services Ltd was placed into Administration on 12 August 2009, and the Castle sold by the administrators in April 2010 for £300,000 to Edwards Property Management (UK) Ltd of Colwyn Bay, who plans to continue the project to convert the Castle into an Hotel. Edwards Property Management. As of 2012 their subsidiary Castell Developments are in the process of securing planning permission for the Hotel. 
Books about Gwrych Castle
- The Rise and Fall of Gwrych Castle including Winifred, Countess of Dundonald- A Biography by M Baker
- Gwrych Castle – A Pictorial History by M Baker
- Myths and Legends of Gwrych Castle by M Baker
Note: The Gwrych Castle Trust Archive and the National Library of Wales hold important materials relating to Gwrych, including numerous original plans and various designs for the stained glass windows.
- "Castle to be auctioned for £1.5m". BBC News website. 29 March 2006. Retrieved 30 April 2007.
- "Welsh haven for Jewish children". BBC News website. 26 January 2006. Retrieved 30 April 2007.
- "Money boost for castle ruin fight". BBC News website. 11 May 2005. Retrieved 30 April 2007.
- "Gothic castle to be luxury hotel". BBC News website. 30 April 2007. Retrieved 30 April 2007.
- "Teenager leads castle preservation campaign". BBC News website. 27 October 1999. Retrieved 30 April 2007.
- Future of Abergele’s Gwrych Castle remains uncertain by Rob Davies, Daily Post, 12 April 2010.
- Gwrych – The Castle of Adventure, The Three Towns Blog, 31 May 2010.
- Screamy Window by John Coles, The Sun, 15 February 2010.
- Gwrych Castle Preservation Trust
- Gwrych Castle website by Mark Baker
- Gwrych Castle website by Chris Keeting
- Photos of Gwrych Castle on Geograph.co.uk
- Gwrych Castle Hotel – website closed
- Clayton Homes