First-time buyers Karen and Michael Reynolds have acquired the Wyastone hotel, an upmarket property in the heart of the Gloucestershire spa town of Cheltenham.
The three-star Victorian townhouse hotel has been run almost entirely as a B&B achieving annual profits of £100,000.
It has a plum location in the fashionable Montpelier district of Cheltenham and is just a few minutes walk from the town centre.
Wyastone hotel offers 13 individually-decorated en-suite bedrooms to sleep 23 guests. They include two family rooms and both four-poster and 7ft sq Emperor beds.
Facilities include a bar, a lounge overlooking the patio garden with ornamental pond and fountain, a 28-seat restaurant with a marble surround open fireplace and deep bay windows, Wi-Fi internet access, and off-street parking.
There is a staff suite on the second floor offering two rooms, a bathroom and a kitchenette along with a detached owners' flat built over a six-car garage to the rear that incorporates a large living room with kitchen facilities and two double en-suite bedrooms.
The Cirencester office of Colliers Robert Barry sold the freehold off a guide price of £1.15m.
By Angela Frewin