A LUXURY Lake District hotel has been sold for less than a third of its original asking price 15 months after its former owner collapsed.

The Sharrow Bay, one of 28 hotels including Seaham Hall put on the market after the von Essen group went into administration, has been sold to a private equity group led by entrepreneur and former TV Dragon’s Den star James Caan.

Hamilton Bradsaw is understood to have paid £1.5m for the Ullswater hotel, which was originally advertised for £5m. The company paid around £4.5m for both Sharrow Bay and the Ston Easton Park in Somerset.

The deal brings to an end a 15-month sale process which included a £5m deal last year for the upmarket Seaham Hall in County Durham, which was originally offered for £12.5m.

The Samling on Windermere was also sold last year for just under its £6m asking price.

Jeremy Hill, director and head of hotels for agents Christie + Co, said: “We’re delighted to have sold the fine country house hotels Ston Easton Park and Sharrow Bay to Hamilton Bradshaw and to have concluded sales on the complete instruction.

“That we were able to do so in little more than a year, and when the market conditions could at best be described as difficult, is symptomatic of the fact that there will always be a market for high quality assets.”