Care home operator Blanchworth Care is the new owner of the three-diamond Downfield hotel in Stroud, Gloucestershire.
It intends to continue running the property as a hotel but will also use it as temporary accommodation for care staff when needed.
The hotel is located on the main A149 road between Stroud town centre and the M5 and benefits from commercial visitors to the business parks that edge the former Cotswolds mill town.
The main building dates back to the mid-19th century, with a two-storey rear extension added in 1980.
It offers 21 bedrooms (11 en-suite), a 30-seat restaurant, a residents' TV lounge and a self-contained, two-bedroom owners' apartment.
The Bristol office of Christie + Co sold the freehold off a guide price of £750,000 on behalf of Nigel and Maura Messenger, who intend to focus on hotel consultancy work.
By Angela Frewin