The De Vere Group has sold the 78-bedroom Barony Castle, in Peebles, on the Scottish Borders, for a sum in excess of the guide price of £1.95m.
The property is set in 25 acres of grounds and has an indoor swimming pool, and is operated as a conference centre with capacity for 200 delegates under the De Vere Venues brand.
The new owners, Prestige Hotel Management. will use Barony Castle - which dates back to the 15th century - as a hotel and conference centre.
Along with the disposal of four De Vere hotels, the sale is expected to help finance the expansion of the De Vere Village Urban Resorts brand.
Gary Witham, director of hotels at Savills, which handed the sale of the property, said: "This is a significant transaction for the provincial hotel market in Scotland and shows the appetite for quality assets. Its historical and cultural importance made it a truly individual asset that simply no longer fitted with our client's long-term strategy."
By Janet Harmer
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