Set to be converted into a nursing home, the 36-bedroom property was brought to the market with an individual guide price of £1.65m.
The Grade II listed establishment was one of four Royal British Legion hotels released by the charity in an effort to close its “break centre” hotels, instead providing greater resources to its casework.
David Rosenberg, who runs Premcard, said: “We are very excited to continue the role that the iconic Byng House had in serving the community, and we will be supporting and adding much needed nursing facilities to the area.
“The building is beautiful and allows us to continue to provide the highest quality nursing care within a homely community. This will be in addition to our existing nursing home, Elm House.”
The property, which includes a bar, activity room, conservatory, hair salon, games room, cinema room amongst others, represents a spike in investors looking for sites that host potential alternative opportunities.
Robert Smithson, senior surveyor at Colliers International, who acted on behalf of the Royal British Legion, said: “There was a high level of interest in this property, both from hospitality operators seeking to continue to run it as a hotel, and also from bidders who could see the potential for alternative uses.
“The shift towards hotels being purchased for alternative uses has undoubtedly added a new dimension to the UK hotels market, which is currently seeing keen competition for prime properties in popular tourist areas.”