The Owl's Crest hotel in the North Somerset coastal village of Kewstoke has been sold to Mike and Maura O'Callaghan.
The stone-built guest house achieved the Gold Commended standard with the local tourist board under previous owners John and Katie Nelson.
It is just off junction 21 of the M5, two miles from Weston-super-Mare and within easy reach of Bristol, Bath, Glastonbury and Wells.
The hotel was constructed as a farmhouse around 1890 and began to trade as a hotel in the 1930s.
It offers four en-suite double bedrooms, with a fifth double en-suite bedroom used as owners' accommodation.
Additionally, the property has a residents' lounge, a 12-seat dining room and an enclosed tea garden outside with patio seating areas.
The Bristol office of Christie + Co sold the freehold off a guide price of £292,500.
By Angela Frewin