The former 17th century coaching inn - which has traded as the Gogginan Arms and the Inn at Ponterwyd in the past - occupies three acres of land in Ponterwyd, Ceredigion, that overlooks the Rheidol Gorge.
Along with nine en-suite bedrooms, the two-star hotels has a 24-seat restaurant, a bar with a feature fireplace, a public bar with a games area, and a residents' lounge.
There is also three-bedroom owners' accommodation with a sitting room and bathroom and seating for 24 in the rear garden which overlooks the valley.
New owners Robin and Karen Atkinson intend to open the hotel for seven days a week to attract trade from off-road rallies, clubs and societies and to offer dog-housing facilities.
The Bristol office of Christie + Co sold the hotel on behalf of Peter and Linda Morley, who plan to run a daytime restaurant or tea room in Leicestershire.
By Angela Frewin