The Andrew Brownsword Hotel Group is in the process of acquiring the Imperial Hotel in Torquay.
The 19th-century four-star hotel has 152 bedrooms, a 220-cover restaurant, two bars, nine conference rooms, a health and leisure club and tennis courts.
The Imperial Hotel was built during the Victorian period, and commands a cliff-top position overlooking Torbay.
The company will be embarking on a sympathetic restoration and refurbishment project of the iconic seaside hotel over the next two to five years.
The hotel will become the third Brownsword hotel in Devon, and will join Gidleigh Park in Chagford and the Royal Clarence Abode in Exeter.