A sale has been agreed for the Bayview Hotel in Killybegs.
Estate agent Rory Dorrian of DNG Dorrian confirmed this morning that contracts were issued in recent days.
Mr Dorrian said he was precluded by contract terms from divulging either the sale price or the name of the new owner.
However, it is understood that the purchaser is a Donegal businessman.
According to Mr Dorrian, the new owner hopes to re-open the hotel early in the new year, after carrying out minor repairs and refurbishment.
The 3 star hotel comprises 40 bedrooms as well as a leisure centre.
The hotel was completely rebuilt in 1994 replacing the old hotel which stood on the site for more than 170 years.