The Combe House Devon will be extended to 33 rooms subject to planning approval, with a conversion of the stable yard and other under-utilised buildings.
A new kitchen garden will grow and supply most of the produce to be served in the restaurant while the remainder will be sourced within a 25-mile radius. The venue is situated eight miles from the coast and the menu will include fresh fish as well as Devonshire cheeses and locally reared meats.
The small hotel chain, run by Robin Hutson, has four sites in Southampton, Brockenhurst, Bath and Studland, Dorset.
Home Grown Hotels CEO Robin Hutson said: “We're really over the moon to acquire Combe House Devon, it’s a fantastic property in a beautiful setting just a mile west of Honiton in the heart of the stunning Otter Valley, and also close to Exeter and the south west coast.
“It will sit well within the footprint of our other five locations.
“So far our other hotels have had a great first half of this year, demand has been very high for the existing properties and our guests want more Pigs, in more locations so we are thrilled to be adding a very special place in such a wonderful location - we know our clientele will love The Pig-at Combe.”
Since 1998, Combe House Devon has been operated by Ken and Ruth Hunt on a lease from the 3,500 acre Combe Estate. The Hunts, who are planning to return to Australia, will continue to operate the hotel through this summer season.