The Chy-An-Mor hotel in Penzance has been sold through the Plymouth office of Colliers Robert Barry.
The Grade II-listed property, which was built in the early 1800s, is part of the AA Five Diamond Premier Collection
It is set in a Georgian terrace close to the town centre and next to the sea front, where it commands views across Mounts Bay.
The four-floor B&B has 10 en-suite bedrooms to sleep 21 guests (including a four-poster room), a residents' lounge and breakfast room. Outside, the property has a front garden along with a rear patio area and courtyard.
The owners' accommodation on the lower ground floor includes a double bedroom with en-suite shower, a bathroom and a lounge.
It makes annual profits of £60,000 from eight months trading between March and October.
Previous owners David and Valerie Smith were seeking offers of around £665,000 for the freehold.
By Angela Frewin