The Inn Collection Group has acquired its first site outside its north-east heartland – the Waterhead Hotel in The Lake District, for an undisclosed sum.

The historic country house hotel, which overlooks Coniston Water, is also the first acquisition for the company since securing new investment from Alchemy Partners earlier this year.

Sean Donkin, managing director of The Inn Collection Group, said: “We are delighted with our first venture into the Lake District. Our plans are to enhance the product over the coming months, with a view to presenting a high-quality hospitality business offering a mix of accommodation, food and beverage in an outstanding lake side setting.”

Waterhead Hotel has been operated as a hotel for more than 100 years and features 24 en-suite bedrooms, a restaurant, conference and meeting facilities set in four acres of landscaped grounds.

Julian Troup, head of UK hotels agency at Colliers International, added: “Its sale is indicative of an unprecedented level of interest from buyers wanting to acquire UK provincial hotels, with the Lake District continuing to be Colliers’ most productive area in the UK. This heightened demand for property in the Lakes is partly because of it being designated a UNESCO world heritage site.”

The Inn Collection currently operates seven sites with an eighth currently under construction in Amble, which is due to open later this year. In July Donkin told MCA that the group was aiming to treble in size in the next five years, and would seek to stretch its geographical boundaries.

The deal was brokered by Colliers International.