Chef patron Steve Reynolds, who previously cooked at Le Gavroche, has run the Herefordshire inn with his wife Nicola since 1998.
The Stagg made history as the first pub to win a Michelin star in 2001, but lost the award in 2016.
The pub was also named the top dining pub in Herefordshire for the second time, and has won the Good Pub Guide national award twice previously.
The Kings Head Inn in Bledington, Chipping Norton, was crowned overall Pub of the Year after the Guide praised its ‘lively bar…first class food and lovely bedrooms’.
Archie and Nicola Orr-Ewing have owned the 16th century inn since 2000 and also run the Swan Inn at Swinbrook.
Evolution of pubs
Good Pub Guide editor Fiona Stapley said the evolution of pubs from watering holes to blurring the lines with restaurants and hotels was key to the sector’s success.
“You name it and pubs will have thought of it,” says Stapley.
“It’s this entrepreneurial spirit that will keep pubs alive and kicking for years to come, despite all the doom and gloom you read about in the press. Pubs hold the trump cards and are the worthy winners in this free-for-all marketplace.”
The Guide’s annual survey of drink prices showed the average price of a pint of beer in Britain has increased 13p to £3.60 over the past year.
Herefordshire and Yorkshire were the cheapest areas for a pint with averages of £3.31, while Surrey overtook London as the most expensive county with prices of £4.40, ahead of £4.20 in the capital.