The grade II-listed site, which was formerly a private home, will relaunch with 21 luxury guestrooms and a 60-cover fine-dining restaurant near Lympstone Village.
Rooms will start from £245 a night, including breakfast, while the restaurant will be split in to three dining rooms overlooking the Exe Estuary.
Though menu details are yet to be confirmed, Caines, who is originally from Exeter, will make use of local Devon wines and produce.
There are also plans to plant a vineyard at the hotel on a slope down to the Exe estuary.
Caines said: “Everything that I have achieved in my long career has brought me to this point where I can fully express my vision of contemporary country house hospitality for the 21st century.”
Caines left Dartmoor’s Gidleigh Park hotel in 2016 after a 21-year tenure which saw him hold two Michelin stars for 18 years.
He is also behind The Coach House Restaurant at Kentisbury Grange Hotel, near Barnstable, and the Palé Hall Hotel and Restaurant in Wales.