The Penhaven Country House hotel and cottages in the North Devon village of Clovelly have changed hands in a confidential, multi-million-pound deal.
Roy Holland and Geoff Baker bought the property from Alan and Maxine Wade, who have operated the business for more than 20 years.
Clovelly is set on a steep hillside and its cobbled high street is famous for its 400ft drop over half-a-mile to the harbour.
The hotel is a former rectory which offers 12 bedrooms and a 60-seat restaurant.
The acquisition also included a private, four-bedroom house, along with eight cottages and a building plot for five more cottages that the new owners plan to develop into a fractional ownership scheme.
The sale was handled by the Plymouth office of Colliers Robert Barry.
By Angela Frewin