Nick and Julia Davies have bought the 30-room property with funding from The Royal Bank of Scotland (RBS).
The pair is planning to modernise the site, renovating the bedroom and reception areas.
Overlooking the Severn Valley, the hotel is comprised of three separate buildings and features a boardroom, Bar Lounge and Outlook restaurant.
The children of previous owners John and Sue Pattin, who ran the business for 25 years, will remain employed at the hotel in senior management positions.
Co-owner Nick Davies said: “We are really pleased that our bid to acquire The Cottage in the Wood has been successful.
“The previous owners of the hotel have established an excellent business and we are looking forward to taking over and working alongside existing members of the team to drive the business forward.
“I’d like to thank the team at RBS for their support which has been instrumental in facilitating our takeover.”