The Dorset Hotel has acquired the three-AA-star, 53-bedroom Hotel Collingwood in Bournemouth from Movecliff off a guide price of £3m.
Directors of the company Eytan and Michelle Krips are now planning a major upgrade of the hotel, beginning with the installation of a £100,000 heating system, and are looking to source the hotel's food and drink as locally as possible.
They are also creating an extra two jobs as well as investing in further training for the existing 30 staff. Eytan Krips previously owned a luxury care home in Lyme Regis.
Ellis Jones Solicitors acted as legal advisers for the purchase with Neil Cook, head of business services, handling the deal.
Eytan Krips said: "Bournemouth is a great destination town and the current investment in new retail and leisure facilities presents fantastic opportunities for hotels such as the Collingwood. It's fair to say that our purchase is not just a vote of confidence in the resort but also the future of independent hotels.
"It was a complex and demanding transaction and Neil, and his team, did an excellent job. Neil's previous business experience proved particularly useful."
He added that the Dorset Hotel would be interested in acquiring similar, high quality hotels.
"If the right opportunity came along we would certainly look at it," he said.
Latest video from The Caterer