Chris and Joanne Blaydes have relocated the restaurant to the hotel in College Road and reopen the enlarged and refurbished business this Easter as a restaurant with rooms.
The hotel near the centre of Windermere was built in 1870 as the Waverley Temperance hotel.
The detached Victorian property has 12 en-suite bedrooms (with planning permission to add another eight), a lounge with bay window and marble fireplace, a 10-seat breakfast room and a 14-seat dining room.
A self-contained three-bedroom owners' apartment is available for the owners.
The business made a £58,162 trading profit on net turnover of £131,548 in the year to 31 March 2006.
The Manchester office of Colliers Robert Barry sold the freehold off a guide price of £895,000 on behalf of Ron and Alison Walker.
By Angela Frewin