The Old Manor Hotel in Lundin Links has been bought by the Wallace family who own The Bay Hotel and caravan park in Kinghorn, and Leven Beach Holiday Park.
The four-star hotel was on the market with a guide price of £1.2m.
The new owners plan to step up the refurbishment programme started by the previous owners, and have unveiled plans to revitalise its future.
The hotel, which has 23 bedrooms, was previously a 19th century mansion house, and overlooks Lundin Links golf course.
It was turned into a hotel in 1994 and was built up by Alistair Saddler for the past 11 years.
The new owners aim to start work early in the new year.
Steven Wallace, one of the directors of Pettycur Bay Holiday Park and the Bay Hotel, said: “We're pleased and delighted to announce that we are the new owners of The Old Manor Hotel, with big plans to modernise and update the property with a full refurbishment programme kicking off straight away.
“We want to reopen in the New Year, ready to make the most of the spring-summer staycation season which is particularly relevant this year with the Open taking place in St Andrews.”
The hotel has outstanding views over the Firth of Forth and Largo Bay, and includes the Sea View restaurant, a cocktail bar and lounge.
The deal also includes a substantial self-contained meeting and conference area, which can cater for up to 120 guests plus the former restaurant lodge building in the car park.
The new owners are looking to recruit staff immediately.
Added Mr Wallace: “We’ve always been a big local employer, and plan to build a strong close knit team here at The Old Manor, covering reception to front of house, to housekeeping, chefs and kitchen staff.
“We hope that local people in the area who are keen on a career in hospitality will want to join us in breathing new life into The Old Manor which is a beautiful building with huge potential.”
A refurbishment programme, covering several of the hotel’s bedrooms started by the previous owners, will now be continued by the new owners.
Added Mr Wallace, who will be heading up the new vision for The Old Manor: “Our offering is strong as we have bedrooms with sea views, private balconies and outdoor seating.
“We are going to ensure all the accommodation is fully upgraded.
“It’s a question of whatever is needed will be done to do justice to the building and to the location.
“We have developed a distinct house style at The Bay Hotel in our mezzanine bedrooms with their breath-taking views across the Forth. These have been a huge selling point for us.
We plan to make the bedrooms here equally as appealing, but a lot of the other refurbishment work needing done is that which visitors do not always see, such as the electrics and rewiring, the fire systems, kitchen equipment and so on.”