The New Zealand buyer, who declined to be named, confirmed the Milburn St property would cease to be a hotel and return to being a residential property "at this stage".
More details would be released later this month, he said.
The 146-year-old building was forced into mortgagee sale by mortgage holder Property Funding Ltd, of Auckland, due to payment defaults.
Asked how much he paid for the property, the new owner said: "It was a fair price in the current climate".
Corstorphine House was owned and redeveloped by Nico and Irina Francken, and closed in early September with the loss of 12 jobs.
Mrs Francken said at the time the global recession had made the "business untenable".
The couple, who have moved overseas, could not be contacted for comment yesterday.
On three titles, the 3.3ha property has a combined capital valuation of $2.9 million.
In 2004, the hotel was on the market for more than $2 million.
Metro Realty agent Craig Palmer confirmed the property sold on Thursday.
Tenders for the sale closed on Monday.
Corstorphine House
- Built in 1863 for John Sidey and remained with his family until 1950s.
- The eight-bedroom home also features 3.03ha of grounds.
- Has a New Zealand Historic Places Trust category one status.
- Extensively refurbished between 1999 and 2001 by former owners Nico and Irina Francken.
- Famous guests include, Prince Charles, actress Gwyneth Paltrow, musician Chris Martin and actor Daniel Craig.
