The 15-bedroom country house, located between Newmarket and Cambridge, has been acquired by the group and will be refurbished to match the collection's signature style - 'intimate luxury and comfort with a stylish modern edge'.
The House Collection, which was officially launched in October, plans to run a group of luxury, boutique properties in the East of England. Its first venue - the Poet's House hotel in the centre of Ely, Cambridgeshire - is set to open in March.
As part of the refurb, a new 60-cover restaurant and two private dining rooms will be created offering local ingredients with a 'relaxed' service. An existing conservatory will be extended to cater for 150 at special events and private hires.
"Injecting fresh investment into Paddocks House presents a wonderful opportunity to revive the property to its former glory," said David Toulson-Burke, managing director of The House Collection.
Local firm Benchmark Contracts is handling the refurb project.
"It will be a fabulous place for local people to enjoy and an asset that will strengthen the wider appeal of the mid-Anglia region, while also supporting local employment," Toulson-Burke added.
Conference facilities for business meetings and corporate events are also expected to be launched when the English countryside venue opens later this year.
The House Collection
Both properties now announced by The House Collection are expected to be targeted at guests looking for luxury, high-end hotels and hospitality in the area.
Ultimately the business is expected to be looking to open a number of properties in the region - each venue in the select portfolio will have no more than 45 bedrooms and will offer accommodation, a restaurant and event catering.
The company was formed by Toulson-Burke, Ian Cross and Jonathan Baker who worked together in the senior management team at Birmingham golf hotel and resort The Belfry.
Development of the business is being supported by Eastern Counties Finance (ECF) - a Cambridgeshire-based firm which until now has traditionally only given financial backing to agricultural and rural investments.