The Grade II listed property, which has been run by two generations of the same family for 40 years, was previously offered at £1.1m which has now been reduced to £995,000.
Set within 3.5 acres of impressive lawn gardens and woodland, with a stream and ornamental lake, the hotel has 12 en-suite double bedrooms, two guest lounges, a fully equipped catering kitchen and 40-cover restaurant.
The venue holds three AA red stars, has featured in the Good Hotel Guide for the past 38 years and is also a member of the Relais & Chateaux Association of independent hotels.
Available by separate negotiation are additional residential properties.
Laundry Cottage is a recently refurbished detached two-bedroom bungalow ideal for use as owner’s accommodation or as a holiday-let, and Stable House, which comprises a large three bedroom, two bathroom family home with a patio, walled garden, pony paddocks, garage and forecourt parking.
Also attached are two large self-contained cottages and a detached double garage with a large bedsit above, with ample parking.
Mark Worley, Director at Christie & Co’s Newcastle office who is handling the sale, said: “Farlam Hall is a wonderful hotel which has been lovingly owned and operated by our clients for many years.
“With abundant possibilities for further investment and development, plus additional revenue streams, the business provides a lucrative opportunity for the right buyer.
“There is a healthy demand for country hotels, particularly those which are close to tourist sites, national parks and commercial areas, and can also offer areas of development and expansion – and Farlam Hall ticks all these boxes.”