The deal will bring the Harwich-based group’s portfolio of hotels to eight and secures the future of The George, which was at risk of being sold to an asset management company.
Legacy Hotels, which operates Surya’s entire portfolio, will take over management of the 47-bedroom hotel, but all 50 existing staff will be kept on and transferred to Surya Hotels under a TUPE agreement.
Suki Dulai, managing director of Surya Hotels Ltd said: "The George is a very emotive place for the people of Colchester. It is one of the most stunning buildings on the historic High Street which has an amazing sense of heritage, not to mention a fantastic place to meet, eat and stay.
"It would have been a travesty for the town if this hotel had fallen into the hands of an asset management company - especially given the fact it is such a highly successful business.
"As a local business we are excited to have successfully acquired such an iconic hotel, which we know and love, and we have big plans to return it to its former glory with significant investment."
Occupying a 500 year-old coaching inn on Colchester High Street, The George hotel features 47 individually-decorated bedrooms, a brasserie, meeting rooms and medieval cellars
The hotel has been owned by Grangeside Ltd since 2000, and was most recently managed by Bespoke Hotels, although it has undergone several changes of management over the past decade.
"We have had five changes of management in the last 10 years so I think the staff are really looking forward to working alongside a steady and ambitious new owner who has expressed the intention to invest in the venue and take it to the next level,” said general manager Denise Earl.
"The George is privileged to have an incredibly loyal staff that are very passionate about their work and our customers and we are excited about the future of the hotel and what we can achieve under the Surya Hotels' umbrella."
Surya Hotels is a subsidiary of Flying Trade Group, which also owns Surya Foods. The hotel group owns eight hotels across the UK including Hallingbury Manor, near Stansted, The Kingscliff Hotel, Essex, The Duke's Head in Norfolk and Legacy Mill Hotel in Suffolk.