Hotel TerraVina, run by husband and wife team Gerard and Nina Basset, is to close at the end of February and reopen in March as a boutique bed and breakfast.
The business will no longer be a wine-themed hotel and restaurant, instead transforming into a bed and breakfast with a kitchen café, serving food from 8am to 5pm. It will be closed in the evenings.
Nina Basset announced the decision on the hotel's website, explaining that Gerard's oesophagus cancer diagnosis had caused the couple to reconsider their priorities.
She said: "As many of you are aware, Gerard has been very ill in recent months and whilst the chemotherapy treatment has gone well, he now faces a major operation in early February, with a very lengthy recovery period.
"During recent months we have had cause to reflect, reconsider priorities and re-assess our lives and the work/life balance not just for us, but also for our wonderful team. To that end, we would like to let you all know that we have made the decision to change the concept and style of the current business."
As a result the wine team will leave the business, while the front of house management team will remain.
When the bed and breakfast open on 5 March it will feature a more relaxed kitchen café offering food throughout the day.
Gerard Basset, the one-time World's Best Sommelier was diagnosed with oesophagus cancer last year.
Earlier this month he was honoured with one of France's highest honours. He was presented with the Mérite Agricole, which recognises individuals who have provided exceptional services within the agricultural economy. It is second only to the Legion d'Honneur.
On receiving the award Basset said he was "humbled to have one's work acknowledged" and was "truly honoured" to receive the award.