The Splendid Hospitality Group aims to lead the budget hotel market in York following its acquisition of the Ibis York Centre hotel.
The group plans to spend £1.5m upgrading the hotel's facilities over the next two years, and marks the 20th property for the hotel group following the recent purchase of the Mercure Bristol Brigstow.
The 91-room hotel is within walking distance from York station and 30 miles from Leeds Bradford Airport.
Stuart Bailey, Splendid Hospitality Group CEO, said: 'This is a strategic acquisition for Splendid Hospitality and an ideal fit for our expanding regional portfolio with three existing hotels in York.
'The Ibis York Centre hotel boasts one of the most central locations in York making it equally suitable for both the business and leisure travellers. Ibis belongs to the Accor brand portfolio and we are pleased to further enhance our partnership with Accor.'