The new owners of the North Devon inn, Gary and Jill Jones from Derby, are familiar with the three-AA-star property because Jill's sister was the general manager there under the previous owners.
The inn is in Queen Street overlooking The Square in the market town, which lies on the South-western boundary of the Exmoor National Park.
Along with 11 en-suite bedrooms, the Old Coaching Inn offers the 120-seat Coachman's Bar, the 80-seat Coachman's Carvery Restaurant, and a 250-seat function room.
Additional facilities include three-bedroom owners' accommodation and an outside dining area.
The Exeter office of Christie + Co sold the freehold off a guide price of £1m on behalf of Victor and Sue Cowan-Dickie, who are retiring.
By Angela Frewin