The Aquae Sulis hotel in Bath has been sold off an asking price of £1.45m to Samir Thukral and Sanjoy Roy of Bath Hospitality.
Previous owners David and Jane Carnegie bought half of the 14-bedroom Edwardian property in 1986 and acquired the other half in 1989, but have decided to retire after 29 years running the business.
Simon Wells, hotel director of Colliers International, which oversaw the transaction, said the buyers, who are from India, are planning to refurbish the hotel and add a conservatory, lounge and restaurant to increase the food and beverage offering.
Wells said occupancy levels in Bath have been rising, and demand for hotels and B&B properties is reaching "unprecedented levels".
He added: "High land prices in London are causing investors to look outside the capital for opportunities to spend their cash. And the electrification of the mainline from London will bring Bath even closer to the capital and boosting its appeal as the long weekend destination of choice."