The Belfry Country hotel and restaurant in the East Devon village of Yarcombe is a first hotel purchase for Neil and Sarah-Jane Martin from Nottingham.
The property, which overlooks the Yarty Valley and is close to the Somerset border, sits on the A30 main road near Honiton.
It was built in 1872 as a village school that was donated by the descendants of Sir Frances Drake and retains a number of original features such as stone elevations and mullioned windows.
The B&B, which holds an AA five-diamond rating, provides six en-suite bedrooms and a restaurant that can seat up to 24 guests that attracts a high level of non-resident trade.
There is two-bedroom accommodation and a private garden for the owners.
Sole selling agent Peninsula Commercial sold the freehold off a guide price of £550,000 on behalf of Paul and Katie Blake.
By Angela Frewin