Donald Macdonald of Macdonald Hotels & Resorts is stepping back from the day-to-day operations of the company he founded 25 years ago.
He will remain as executive chairman of the group of 55 hotels and resorts in the UK, Ireland, Spain and Portugal, but will relinquish the role he took on following the departure of David Guile as chief executive in July 2014.
Gordon Fraser, deputy chairman and group finance director, has been appointed group managing director, while Robert Cook has moved from commercial director to chief operating officer.
Macdonald said it had been "a true privilege to work alongside so many fantastic people" over the past quarter of a century. "Thanks to the efforts and skills of the entire team, the business is stronger today than at any point in its proud history.
"Given the exciting plans that harness the quality of our people, our product and our customer service, now is the right time to implement the latest phase of our succession plan and I am extremely confident that we will continue to build from this position of strength."
Fraser, who joined Macdonald Hotels in 1992, was appointed group finance director in 2005, deputy chief executive in 2008, and deputy chairman in 2014.
He paid tribute to Macdonald by describing his contribution to the company and the wider industry as "unparalleled".
"I am pleased that he will continue to provide expert guidance and counsel in the years ahead," he said.
In its most recent financial results, for the 12 months to 2 April 2015, Macdonald Hotels & Resorts increased its turnover by £10.2m to £155.7m.
Total operating profit rose 11% to £16.9m, while profit after tax increased by £2.5m to £6.1m, partly due to a deferred tax credit of £3.3m. However, pre-tax profit was £928,000 below the previous year's figures at £2.7m.