Wollongong's Best Western Hotel on Gladstone Avenue will be rebranded as a Mantra hotel in mid-March after new owners Moss Capital successfully negotiated a partnership agreement.
Last month, the Illawarra Mercury reported the Best Western, which had been under administration, had been sold.
The agreement is the first time Mantra, a Queensland-based hotel group, has established itself on the NSW South Coast.
The property will be the second management agreement between Mantra Group and Moss Capital, having partnered previously in Peppers Cradle Mountain Lodge after its purchase in 2012.
Mantra Group chief executive Bob East said it would be "business as usual" for management and staff at the property.
"We have a diverse mix of regional locations in the Mantra hotel network and we are pleased to now announce our first property on the NSW South Coast," he said.
"We view Wollongong as one of the most significant regional markets in Australia, we have confidence in the region and its continued growth and development as a major regional hub."
Opened in 2008, the hotel would undergo a series of upgrades to rooms and facilities over the next nine months to ensure it remained a hotel of choice for the region.
Executive director of hotels, tourism and leisure for Moss Capital, Marianne Ossovani, said the new addition to the portfolio was a positive step for the region.
"The Mantra brand is a well-known and respected mid-market hotel brand and we look forward to bringing the expertise and profile to the property and to the city of Wollongong," she said.