The Mercure Blackburn hotel has been sold on behalf of Aviva Life from an asking price of £1.2m, and will now be rebranded.
The hotel is on a 9-acre site at Billington on the edge of the Ribble Valley, an area of outstanding natural beauty. It has 44 bedrooms including 28 suites, a health club and spa including indoor swimming pool, five conference and banqueting rooms and a restaurant and bar.
Colliers International represented Aviva, and sold the Mercure to experienced operators Charles and Jean Haigh.
The Haighs are the former owners of the Sparth House Hotel at nearby Clayton-le-Moors. After a period of refurbishment they aim to provide luxury accommodation and excellent dining facilities in the Blackburn hotel.
Neil Thomson, associate director of hotels agency at Colliers International in Manchester, said: "We have seen a significant increase in the volume of buyers in the marketplace aided by the fact that banks are now starting to take a more positive and commercial view in terms of new lending.
"The improved housing market has also helped potential buyers unlock equity allowing them to acquire good quality commercial assets."
The Colliers hotels team recently advised on the sale of the Windermere Hydro Hotel near Bowness-on-Windermere to Square Hotels for around £3.75m. This was the third substantial Lake District hotel transaction undertaken by Colliers so far this year – with deals in June and August respectively for the 49-bedroom Grasmere Red Lion Hotel and the 57-bedroom Burnside Hotel.