Liverpool-based the Know Collection has acquired the Bridge Street Townhouse on Lower Bridge Street in Chester for an undisclosed sum.
The 30-bedroom hotel has a guest gym, bar and a contained apartment.
The Know Collection is based on Hatton Garden in Liverpool where it operates the Richmond hotel, Ameriesko and Nourish (a female-only spa). It also runs Love Thy Neighbour on Bold Street.
Owner and CEO Steven Hesketh said: "Chester has been named as one of the top five places in the country to live by The Sunday Times and crops up time and time again on the lists of places to visit - rich in both history, culture and nightlife.
"The hotel is set within the Roman Walls and is steeped in history itself, with a stunning Georgian look, it's close to the picturesque River Dee and all the famous Tudor architecture Chester has to offer.
"Whether you're here to work or to play, the hotel is at the heart of this very vibrant city and a great investment for us in the thriving visitor economy here in Chester."
Hesketh spent all his working years within the hospitality sector including time at the former Chester Moat House hotel, now Crowne Plaza and also the Ramada Chester, now the Mercure, Chester.
After building up the independent group over the past four years, it now successfully employs more than 120 people and turns over around £6m a year.
The Know Hospitality Academy offers on-the-job training and education to young people, and Hesketh said he was looking forward to rolling this out in the Bridge Street Townhouse as well.
He has plans to introduce fresh food and beverage offering at Bridge Street Townhouse following a rebrand in the coming months.
"It's an exciting time for the Know Collection and we're looking forward to striding into this hotspot and working alongside those who have already made the city the fantastic visitor attraction it is today," he said.
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