Windermere Hydro Hotel, located close to the centre of Bowness-on-Windermere in the Lake District, has been bought by Squire Hotels for a sum close to the guide price of £3.75m.
Squire Hotels, which was launched in 2013, plans to fully refurbish the hotel.
The three-star hotel with 84 bedrooms, extensive public areas and leisure facilities was sold on behalf of the Lake Hotel Limited by the specialist hotels agency team at the Manchester office of real estate advisors Colliers International.
The principals of Lake Hotel Limited – Paul Tomlinson and Ken Burchill - will be retiring from the hotel industry.
Windermere Hydro, which dates back to the 19th century, occupies an elevated site on the fringe of Bowness-on-Windermere village, having outstanding views towards Lake Windermere.
Julian Troup, head of UK hotels agency at Colliers International, secured the sale on behalf of the owners.
He commented: “Our instructions were to handle the matter in a confidential fashion and we employed a targeted approach to marketing.
“We were able generate a healthy level of interest and Squire Hotels were given “preferred bidder status” on the back of their proven ability to perform having acquired two other North West of England hotels in the recent past.
“The Lake District continues to attract a substantial level of interest for both outright operational hotels together with smaller lifestyle hotels and guest houses.
“We are seeing an increasing amount of interest from a variety of different types of buyer coming from all parts of the UK and even further afield.”
The Windermere Hydro is the third substantial Lake District hotel transaction undertaken by Colliers International in 2014 – with deals in June and August respectively for the 49-bedroom Grasmere Red Lion Hotel and the 57-bedroom Burnside Hotel.