Chief Minister Allan Bell has welcomed the sale of the Mount Murray Hotel and Country Club.
Comis Holdings has announced plans for a ‘world class’ hotel and leisure development after a deal to buy the complex was finalised.
First phases of work to refurbish the hotel, which closed following a fire in 2013, should begin within weeks.
The development will be known as COMIS at Mount Murray.
Mr Bell said: ‘It is very good news.
‘It was tragic to see the fire and the closure of what had been a very successful part of the Isle of Man tourism industry. The recent report on the hotel industry drawn up by the DED highlighted the need for more high quality accommodation.
‘The timing of this sale has to be very good news for the industry and the island generally.’
The golf club itself remains open and Comis Holdings plans to re-open the restaurant in the coming weeks – a further announcement will be made in due course.
Comis Holdings, registered at Athol Street, Douglas, was formed last year specifically to negotiate the purchase and redevelopment of the former Mount Murray Hotel and Country Club.
Fifty people were evacuated from the hotel when the fire broke out in November 2013.
Flames ripped along the roof of the bedroom block and firefighters were praised for their efforts in preventing the blaze from spreading to the reception block next door.
There was only one casualty who was treated for minor injuries at Noble’s Hospital accident and emergency department.
The function rooms, restaurant, bistro, pool and gym opened within a fortnight but 30 jobs were lost with the blaze having destroyed 90 hotel rooms.
After the fire Mount Murray continued to trade without 90 bedrooms in the accommodation block.
But the late Albert Gubay, who built the hotel, closed the whole business apart from the golf club in February last year. Since then it has been shut.