Windermere Hydro hotel in Bowness-on-Windermere, Cumbria, is to undergo a total refurbishment after being acquired by Squire Hotels, for a sum close to the guide price of £3.75m.
The 84-bedroom hotel has been sold by Paul Tomlinson and Ken Burchill of Lake Hotel, who are now retiring from the industry.
It will be the third property for Squire Hotels following the acquisition of the four-AA-star, 64-bedroom Etrop Grange hotel, near Manchester Airport.
Dating back to the 19th century, the Windermere Hydro is located in an elevated site on the fringe of Bowness-on-Windermere village and enjoys widespread views over Lake Windermere.
The sale of the hotel was handled by the Manchester office of real estate company Colliers International.
Julian Troup, head of UK hotels at Colliers International, said: "We were able generate a healthy level of interest and Squire Hotels were given ‘preferred bidder status' on the back of their proven ability to perform, having acquired two other North West of England hotels in the recent past.
"The Lake District continues to attract a substantial level of interest for both outright operational hotels together with smaller lifestyle hotels and guest houses.