The three-AA-star, 29-bedroom Best Western Whitworth Hall Hotel and Country Park in Spennymoor, near Durham, has been sold to the family of its former owner.
Derek Parnaby Cyclones International, a nearby engineering business owned and managed by Adrian Parnaby and his family, has acquired the property out of administration, off a guide price of £1.25m, saving 40 jobs.
It was previously owned as a private house between 1980 and 1997 by Adrian Parnaby's father, Derek.
Adrian Parnaby said: "My family and I are proud to take over the ownership of this historic property and look forward to working closely with existing management to develop the hotel and grounds in the future. We are pleased to be able to maintain the existing staff, and fully intend to honour all existing bookings."
Andrew Haslam of Begbies Traynor, said that there had been widespread interest in the property, which stands within a 23-acre deer park, from more than 30 potential buyers. "Derek Parnaby Cyclones International Limited was able to provide the best return for creditors as well as offering the hotel, its staff and customers, a brighter future," he added.
Colliers International negotiated the sale of the hotel.