The company has acquired the 30-room Stonecross Manor Hotel in Kendal, which will be operated by Onecall Hospitality on its behalf.
The 150-year-old site is set to undergo a major refurbishment of its bedrooms, bar, restaurant and function rooms to re-establish it as a ‘focal point within the community’ and attract tourist trade.
H&M said it was seeking further sites to create a chain of ‘hotels of character’.
Mark Chambers, managing director of Onecall Hospitality, said: “Stonecross Manor Hotel is one of Kendal’s best known hotels and is well loved by locals and visitors to the Lake District alike.
“It is our ultimate intention that Stonecross Manor Hotel will be the first of a unique collection of hotels of character under the ownership of H&M Hotels.”
H&M Hotels is a sister company to Everbright Lodge, owner of the Rossett Hall Hotel in Wrexham and the recently acquired Wild Pheasant in Llangollen, North Wales.
The Lake District has mounted a major international campaigns to promote its tourism offering over the last few years, including a £15,000 push to attract Chinese visitors.
Mark Worley of Christie & Co acted as agent for the sale of the property.