The 30-bedroom Number 10 boutique hotel in Edinburgh has been sold for around £5m to Indian hotel company Shanti Hospitality Group.
Formerly known as the Christopher North Hotel, the property - occupying two Georgian houses - has been sold by Louise Koch Leonard.
"Much of the success of the hotel was repeat business from an international clientele, many of whom have become great friends," she said. "My staff have all been excellent but will remain totally committed to the new owners."
It is the first acquisition in the UK hotel sector for the Shanti Hospiality Group, although it operates the Moti Mahal restaurant in London. The company's hotel brands include Nira Hotels and Resorts, Ananda in the Himalayas, Ista Hotels, Amrita Hotels and Nidra Hotels.
Bhanu Choudhrie, director of the group, said he is excited to be entering the UK hotel market and is expecting 2012 to be an interesting year for tourism off the back of the Olympic Games in London.
"Today foreign and domestic tourism to Edinburgh is strong, and we believe that summer 2012 will witness an influx of foreign visitors which will springboard this inspiring capital into an even stronger position."
David Reid of Knight Frank, who handled the sale, said: "The very top of the property market is still active and when a prime hotel with outstanding profitability and immaculately presented comes to the market, there are still buyers, particularly from London and overseas."
By Janet Harmer
E-mail your comments to Janet Harmer here.
If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk
Looking for a new job? Find your next job here with Caterersearch.com jobs