The four-AA-star, 83-bedroom Legacy Falcon hotel has been acquired out of administration by the St James's Hotel Group.
Situated in Chapel Street near the Royal Shakespeare Theatre, the hotel has two restaurants, two bars and seven meeting rooms, including one for up to 200 people.
The hotel was previously owned by Noblelarge, but recently has been under the control of Grant Thornton after going into administration.
St James's, a subsidiary of the Jersey-based real estate company Somerston Group, will now undertake a £6m refurbishment of the hotel, which will include the installation of air conditioning to all the bedrooms.
Previously operated by Legacy Hotels, the property will now be managed by St James's Hotels, who will retain the current management and staff. Shaun Robinson, managing director of St James's, said that the Falcon has suffered from a lack of capital investment in recent years.
"With a combination of some significant refurbishment, rebranding and committed management, we are confident of returning it to its former glory while providing up to date accommodation for our guests," he said.
St James's has also recently acquired the 119-bedroom Hilton hotel in Portsmouth, which will now undergo a £4m investment to be converted into a 150 bedroom property and re-branded as a Holiday Inn Express.