The Feathers hotel in Ludlow, Shropshire, has made an admission of civil liability regarding the death of a 69-year-old woman from Legionnaires' disease, lawyers acting for her family have said.
Elaine Brown from Merseyside died at the Royal Liverpool University Hospital in August 2017 after suffering a stroke as a result of Legionnaires' disease, which emerged just days after she stayed at the hotel with her husband Graham.
Public Health England later confirmed that a second guest at the three-AA-star, 40-bedroom property had also contracted the disease and made a full recovery.
The Feathers hotel closed voluntarily for two months and has since been put up for sale.
Lawyers from solicitors Irwin Mitchell's specialist public health team said an admission of liability regarding the civil claim had been received from the hotel, paving the way for a future settlement agreement.
Jatinder Paul, an associate solicitor at Irwin Mitchell said: "It is over six months since Elaine passed away and her family remain understandably devastated and angry at their avoidable loss.
"While we welcome the admission of liability by the hotel as a positive step forward for the family in this legal action, ultimately the hotel's decision to take responsibility for its failures cannot turn the time back and Graham has lost his dear wife."
The Public Health England investigation is ongoing and its formal outbreak report is awaited.