The 40-bedroom, family-run Fourcroft hotel in Tenby, Pembrokeshire, has been bought by Northern Powerhouse Developments.
A price was not disclosed for the hotel, but it was marketed for offers in excess of £1m.
Going forward, the hotel will be operated by Giant Hospitality, owned by Gavin Woodhouse and Northern Powerhouse Developments.
The Georgian terrace hotel had been in Chris Osborne's family since the early 1940s, however he put it up for sale last year in order to semi-retire and pursue other interests. The deal was brokered by Peter Brunt at Colliers International.
The Fourcroft will be a sister hotel to the Llandudno Bay Hotel and Spa, part of the group's premier Hotel Collection. Northern Powerhouse Developments acquired the Llandudno hotel in August last year off a guide price of £3m.
The group owns and operates six other hotels, five of which are under construction and development, and two of which are in South Wales: the Camarthen Bay Hotel and Spa and the Wyncliffe House hotel, both in Pembrokeshire. It also plans to acquire and open one further hotel in South Wales.
Northern Powerhouse Developments chairman Gavin Woodhouse said: "We are delighted to add the Fourcroft to our UK hotel portfolio. It has been amazing to see the passion Chris Osborne has demonstrated over the hotel and towards his guests. Our aim is to continue to maintain a personal style and touch to the service while providing it the security of a much larger operating machine supporting it through operation."
Brunt added: "With much of the town's economy depending on tourism, Tenby has three huge factors in its favour: a fantastic situation on Carmarthen Bay, great road communications via the M4 and half a dozen or more top notch tourist attractions within a very short distance."
Osborne, who will hand over the hotel at the end of March, said: "The Osborne family is delighted it will continue as an hotel, supporting existing and future employees, the local community and the various sponsorships to which it has been committed for many years. The family is pleased that its over 70 years of running Fourcroft leave an ongoing legacy for the benefit of Tenby."