Fragrance Group has acquired the Marine Hotel in Paignton, Devon off a guide price of £1.5m.
The Marine Hotel spans across 0.45 acres and features 53 bedrooms, a 100-cover restaurant and a conservatory, bar, lounge and entertainment area that can hold 100.
Three apartments located within the hotel are used as manager's accommodation, while parking is available for 25 cars and two coaches.
The sale was conducted by Savills and the hotel will be operated by hotel management company RBH on behalf of the Fragrance Group.
Martin Rogers, representing the Fragrance Group, said: "This acquisition of The Marine Hotel is further testament to our confidence in Torbay and the UK Regional Hotel Market."
Harriet Fuller, associate in the Hotel Capital Markets team at Savills Exeter, added: "We are delighted to complete the sale of this established seaside hotel on a large freehold site following a confidential marketing campaign.
"The Marine is well located within the wider Torbay area and benefits from excellent sea views. We are seeing continued demand in the market from investors seeking well-located hotels, especially those in waterside positions."
It comes after the Fragrance Group revealed in April that its £23m Corbyn Head hotel in Torquay, Devon, is due to be completed by summer 2024.
The Fragrance Group's portfolio includes the St Chads, Imperial and Lyndene hotels in Blackpool; the Crown hotel in Harrogate; the Aloft Liverpool hotel; and the Townhouse hotel in Manchester.