The Grade II listed Victorian property sits on the town’s North Walk and overlooks the cliffs of Lynmouth Bay.
The three-storey hotel has eight ensuite bedrooms. The hotel includes a restaurant, bar, guest lounge and terrace.
The hotel has been purchased by business owners Martyn and Gillian Adams, who plan to further invest in the property and continue to build on its reputation built.
The Seawood Hotel was sold off a guide price of £795,000.
Stephen Champion, senior business agent at Christie and Co’s Exeter office said: “The hotel market in the South West region continues to stay strong with levels of interest in hotels remaining high from well funded local and international buyers.
“ We congratulate Martyn and Gillian on their purchase and look forward to seeing further announcements in the coming months on how they plan on taking the business forward.”