The takeover of the hotel, a few miles from the Ardbeg Distillery, is due for completion by the end of October and the company will continue to operate the business as a going concern as it looks to establish “a world class whisky and hospitality experience” on the island.
“Ardbeg has been rooted on Islay for over 200 years,” said Glenmorangie Company chief executive, Thomas Moradpour.
“And since we plan to be distilling on the island for at least 200 more, we are excited to invest even further in our homeland, by purchasing the Islay Hotel and creating a world-class whisky and hospitality experience.
“We look forward to welcoming whisky fans from Islay and around the globe.”
The purchase of the hotel is the company’s latest investment on Islay. It has recently built a new still house at Ardbeg as well as improving the distillery’s visitor facilities and earlier this year pledged to donate £1 million to local causes through the sale of Ardbeg’s oldest whisky.