Leicestershire hoteliers Mike and Karen Cotton are the new owners of the Sandpipers hotel and the Fat Cat restaurant and bar on the Isle of Wight.
The Victorian property joins the Cotton's Harboro hotel in Melton Mowbray, Leicestershire.
Sandpipers, which was built in the 1860s and extended in 2005, is a large detached building in the West Wight village of Freshwater Bay, with views over the bay.
It offers 25 en-suite bedrooms, a 60-seat restaurant, two residents' lounges, a residents' bar, a function room to seat up to 100 guests, and a former meeting room that now serves as a shop.
The Fat Cat restaurant and bar was originally in three separate parts which are being merged to create seating for up to 60 customers.
The hotel also offers a leisure suite comprising treatment, changing and shower rooms; three-bedroom self-contained accommodation for the owners and a small staff flat.
Outside, a large decked sun terrace provides seating for another 100 people.
The business achieved a net turnover of £752,670 in the year to 31 March 2007.
The Southampton office of Colliers Robert Barry and the Bristol office of Edward Symmons were inviting offers in the region of £875,000 on behalf of the joint administrators from Baker Tilly Restructuring and Recovery LLP.
By Angela Frewin