Lancashire couple Jeff and Pam Faulkner are the new owners of the Carmelle Lodge hotel in Falmouth, Cornwall.
They have bought the property off a guide price of £635,000 through the Plymouth office of Colliers Robert Barry, which was acting on behalf of Linda Carthew.
The property, which carries an AA four-diamond rating, is believed to have been built around 1910 as a gentleman's residence.
It now offers 11 letting bedrooms to sleep up to 27 people, a guest lounge, a 20-seat dining room and a two-bedroom owners' apartment on the ground floor with a lounge and bathroom.
There is a small lawned garden with a timber-decked patio at the front of the building.
The hotel occupies a prime site between the sea front, the harbour and the National Maritime Museum and attracts both tourists and, in the winter, commercial guests.
By Angela Frewin