Plymouth's Grosvenor hotel has been snapped up by Kamran Masud and Manzoor Ahmed for £3m.
The five-story, 43-bedroom hotel, which occupies three Victorian buildings on Plymouth Hoe, was purchased using a finance package from HSBC UK and marks the pair's entry into the hospitality industry.
Previous owners Paul and Lindsey Bennett decided to sell the business after 10 years. All 18 members of staff have been retained.
Ahmed said: "This is an exciting opportunity for us to pursue our passion for the hospitality industry, enabling us to bring new ideas to a well-established and successful business model."
Mark Self, HSBC UK's area director for Devon, Cornwall and Somerset, said: "The Grosvenor hotel has played an important part in Plymouth's tourist and hospitality industry for over 25 years. By purchasing the hotel, Kamran and Manzoor have created an excellent investment opportunity and we're delighted to be supporting them as they take the business in a fresh direction."