The new owner of the Pack Horse Hotel in Bradshawgate, Bolton, plans to turn it into student accommodation, reopening in spring 2012.
The hotel was sold by fixed charge receivers Steven Williams and David Acland of Begbies Traynor through agents Colliers International to Javid Sadiqque of Hamilton Black Developments.
Sadiqque plans to turn the formerly successful town centre hotel into student housing serving Bolton University. The hotel was marketed with an asking price of £600,000.
The hotel building contains 68 en-suite bedrooms and a restaurant seating 80 and a ballroom with a capacity of 200. Despite being well-known in the Bolton area, the hotel closed its doors two years ago.
Neil Thomson, associate director of selling agents, Colliers International, said: "For many years the hotel was a thriving town centre business, well-known in Bolton as the place to be, popular for its high profile parties and weddings, bustling bars and busy restaurants. The property was re-organised in 2003 when the venue bars on the ground floor were sold off on long leases, with the main core of the hotel being sold separately as an independent business."