Coventry City Council is set to buy the leasehold of the Coombe Abbey hotel from businessman Gordon Bear.
The plan was approved by the council today, and the deal could be completed in the next two weeks. The council already owns the freehold to the 119-bedroom, Grade I-listed property and its estate in Binley, Warwickshire.
The leasehold is owned by Coombe Abbey Park and No Ordinary Hotels, both headed by Gordon Bear, who is believed to be looking to retire. Lumley Castle in County Durham is also part of No Ordinary Hotels.
Councillor Jim O'Boyle, cabinet member for jobs and regeneration, said: "The purchase will be funded from reserves. This is cash we can only spend once which is why we can't use reserves to fund services. But by investing it in a successful and profitable company we are making an investment in the future."
The council plans to set up a company to run the hotel for it.
The building dates back to 1150 when it was the largest monastery in Warwickshire. Lancelot Capability Brown created the top pool and the main lake in 1771. It opened as a hotel in 1995.
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