Peter Gabriel flew into Co Donegal last weekend, walked the streets of Killybegs and introduced himself to some of the locals.
He had spotted the hotel for sale on a website and decided to buy it.
The property had been listed for sale at an auction for €400,000 but was later withdrawn after Mr Gabriel stepped in.
He’s now considering spending a lot more time in the fishing town with his family.
Mr Gabriel says the hotel will have a ‘soft opening’ this Sunday with a more formal opening in the New Year.
The 3-star 40-bedroom hotel was constructed in 1994 to replace the previous hotel on the site which had stood there for 170 years.
The re-opening of the landmark hotel is a huge boost to the area after so many jobs were lost when it closed.