The family-owned firm has three hotels in the USA and the De Montfort is now their third hotel in the UK.

The firm plans to invest heavily in the hotel with an extensive internal refit and modernisation.

The plans will be revealed over the coming weeks and Anil Khanna, of Khanna Enterprises, says the company will be investing significant amounts of money in the building and business.

He said: "We have searched long and hard for a hotel with exceptional potential and a great location and the DeMontfort in the heart of Kenilworth represents that. We've only owned the hotel for just over two weeks and although we still have a lot of planning to do we are keen to get on."

Joe Baconnet, Town Centre Manager, added: "This is great news. The Town Centre Partnership has always believed that The DeMontfort is an asset to the town and can deliver more for everyone. Khanna Enterprises seem ready and willing to invest in the hotel and that will help Kenilworth immensely."

Sally Carrick, chair of the town centre partnership said: "The continuing flow of investment into Kenilworth is heartening. I hope the De Montfort will be a real focus for business in the town."

Michael Coker, vice-chair of the partnership and leader of Warwick District Council said: "After a long struggle to help make things happen, Kenilworth town centre will finally start to fulfill its immense promise. It's good to see the private sector continue to have faith in Kenilworth's future."

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