A HOTEL which claims to have the best location in Bournemouth has been sold for around £7.5m.

The four-star Hermitage Hotel, near the BIC in Exeter Road, was snapped up by established Bournemouth hotelier David Young.

The 75-bedroom hotel includes an annexe and the glass Rotunda restaurant.

It trades on having the best location in town, with guests able to reach the beach without crossing a single road.

The Hermitage had been owned for the past 21 years by developer and investor Philip Oram, who invested in a major building and refurbishment programme there. He raised the quality of accommodation to four-star standard and achieved an AA rosette for the restaurant.

Mr Young said: “I have been a long time admirer of the Hermitage and am delighted to have secured such a fantastic opportunity that still offers potential for both development and growth.

“Retaining the excellent management structure and team is important to the continuity of what is already a well established and much loved hotel. We have ambitious plans for the Rotunda restaurant which will add another dimension and draw further business to the location”.

The sale was handled by the hotels and leisure division of Dorset-based property specialist Goadsby.

Ian Palmer, divisional director for Goadsby, said: “This sale reflects the growing confidence in Bournemouth, notwithstanding the exciting developments under construction and vibrancy of the immediate location.

“It is particularly pleasing that the hotel has attracted such an experienced operator and will remain in private ownership.”

He said the hotel was one of several being marketed through Goadsby.

In 2006, the Daily Echo reported on how Bournemouth council was losing tens of thousands of pounds in business rate while a boundary dispute over the hotel’s extension continued.

Council officers believed the two-storey extension encroached on a council-owned car park and asked Mr Oram for £50,000 to resolve the situation.

But Mr Oram insisted the development had not crossed the boundary. Both sides were believed to have spent tens of thousands of pounds on legal fees during the dispute.

Bournemouth Borough Council confirmed yesterday that the dispute had since been resolved.