Keswick Park Hotel in the Lake District has been sold to a Chinese investor from an asking price of £995,000.
The move is a sign that investors are increasingly looking to destinations outside London, said property specialists Colliers International, who managed the deal.
Owners Don and Tracey Rogers, who bought the 16-bedroom, AA-four star, four-star Visit Britain guesthouse in 2007, are retiring from the hotel trade and moving to live locally.
Buyer Tony Zheng from Beijing is currently refurbishing the property and plans to re-open it in time for Easter.
The historic hotel dates back to 1880, and also has a 24-cover conservatory restaurant and an adjoining two-bed owners' flat.
Haydn Spedding, associate director, Hotels at Colliers International, said: "Mr Zheng is indicative of an increasing number of quality overseas buyers looking to acquire hotels such as Keswick Park, as investor interest moves outwards from London to other popular destinations such as the Lake District and major cities including Manchester.