The 34-bedroom Hudson's Hotel in Bootham, York, has been sold and will undergo a name change to Minster Hotel.

The buyers are Navin Valma, owner of the Edinburgh-based Townhouse Group, in partnership with businessmen James Barlow .

The Victorian hotel is now being marketed as the first outside Scotland within the growing portfolio of the Townhouse Group.

Already work has begun to refurbish the hotel to three-star status and extend it to offer nine more bedrooms.

Mr Valma said: "We are spending up to £550,000 on the extra bedrooms which will be four-star standard at two-three star prices, as well as the restaurant and bar and new, upgraded conference rooms."

How much the two men paid for it is undisclosed but the prime site hotel, with a rooftop garden view of the Minster just 400 metres away, had an asking price of £1.5 million.

The hotel was sold following the decision of Ray Hudson to retire and relinquish his 20-year ownership of the premises.

It was converted from two Victorian houses in 1981 and now has an AA two-star grading with three of its 34 bedrooms with four-poster beds.

With the York registry office next door it specialises in wedding receptions and has two dining rooms, one seating 100 people, the other 30, a bar, function room with disco, a commercial catering kitchen and parking for 34 vehicles.

Leigh Parsons, of estate agents Christie & Co, said: "This is the third £1m-plus hotel sale in York that Christie & Co has achieved within a year.

"The market for good quality hotels in the city remains extremely strong and we have four other hotel businesses under offer."

The Townhouse Group includes the Ailsa Craig Hotel, Greenside Hotel and Frederick House Hotel plus, Carlton Apartments, all in Edinburgh, and the Theatre Hotel, Glasgow.