The three-AA-star George hotel in Cheltenham is being offered for sale for £3.25m, after being reduced by £350,000.
Made up of five converted townhouses dating from 1840 on the western side of the town, the hotel originally came to the market in November 2017 for £3.6m.
The hotel is being sold by property agent Christie & Co on behalf of the owners, Michael and Pamela Horton.
Matthew Smith, director at Christie & Co's Bristol office, said: "This is a rare opportunity to purchase an established freehold hotel business in central Cheltenham, one of the UK's most desirable towns.
"The opportunity provides an array of possibilities to maximise gross profit margins by reconfiguring and creating more bedrooms, continue operating as a full-service hotel or perhaps an alternative use."
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