The hotel, in which former British Prime Minister Tony Blair spent many summer holidays, was sold to current manager Paul Diver when it went under the auctioneer’s hammer at the Shelbourne Hotel.
The bidding, which opened at €600,000, lasted just a few seconds before Mr Diver snapped it up.
Mr Diver, who has managed the hotel for the past 20 years said “I just can’t believe it. It’s a total adrenaline rush. It’s been a long, long road but we’ve made it.”
When asked if he was surprised by the lack of interest in the 55 bedroom hotel, Mr Diver quipped: “No, I was delighted”
There were a couple of bids on the hotel before it closed at €650,000.
The hotel has been owned by the local Britton family for more than 50 years and had a number of VIP guests over the years including Woody Allen and then wife Mia Farrow.