Llandudno seafront hotel, The Baytree Hotel, is undergoing major refurbishment after being sold to new hoteliers.
June Dickens and her husband, who are retiring after owning the Baytree Hotel for almost 40 years, sold the four-storey property to Trevor Mitchell.
Mitchell's company already owns the Chatsworth House Hotel and New Loretta Hotel in the town.
The sale price was undisclosed but is believed to be close to the asking price of £625,000.
The Baytree Hotel, situated on North Parade, has been closed for several years, only opening for the peak season tourist trade.
It has 47 en-suite bedrooms, a lounge bar and dining room, a conference room with dance floor and fully equipped commercial kitchen.
The new owners are refurbishing the four-storey property to create a modern hotel and plan to reopen in May.
The hotels team of real estate advisors Colliers International advised on the sale.
Neil Thomson, associate director, hotels agency of Colliers International in Manchester, said the sale and investment in refurbishment reflected improved sentiment among hoteliers in North Wales.
He said: "Investment by existing hoteliers in Llandudno and throughout North Wales demonstrates that confidence in the market seems to be returning.
"Although the licence and hospitality sector remains challenging, banks now seem keen to talk to buyers who want to purchase a guest house or small hotel, providing the opportunity for operators, who have been keen to sell for some time, the chance to finally exit the market."