The three-star, 120-bedroom Falmouth Beach hotel, which was extensively damaged by a fire in May 2012, has been bought for an undisclosed sum by neighbouring hotelier Nigel Carpenter.
Carpenter, who owns the four-star, 61-bedroom St Michael's Hotel and Spa, plans to reopen 29 bedrooms and three self-catering apartments at the Falmouth Beach hotel that were unaffected by the blaze, on 8 August.
In the long term he plans to redevelop the property and is considering his options on the style and positioning of the new hotel he will create.
The Falmouth Beach hotel was previously owned by the Evans family and was branded as a Best Western hotel.
Carpenter said he was excited by the acquisition and was looking forward to welcoming guests to the hotel. "The site of the hotel is the best in Falmouth, opposite the wonderful blue-flag Gyllyngvase Beach," he explained.
The hotel and apartments will initially operate on a room-only basis and guests will be invited to take breakfast, dinner and spa treatments at the St Michael's Hotel.
Carpenter said that he would consult with neighbours and the local community, as well as look at visitor trends, before developing proposals for the future of the site.
"It will be important to understand what type of accommodation or facility is going to attract visitors to Falmouth in the future," he said.
"Architecturally, we want to create something which is stylish and attractive.
"I am delighted that we have a wonderful opportunity to bring economic activity, jobs and prosperity back to this area, which was devastated by the fire over a year ago. We are all excited about building something great for the future, something which Falmouth can be proud of."
St Michael's Hotel and Spa was acquired by Nigel and Julie Carpenter in 2001, and has since benefited from a £5m refurbishment.