The Reef Hotel at Anse Aux-Pins in Mahé will be demolished and rebuilt by the new owners, two Mauritian businessmen.
The hotel was the first Seychelles property of an international standard when it opened in 1972. It closed in 1990. The new owners were allowed to purchase the property on the understanding that certain historic aspects remained, including the name, Reef Hotel.
The developers are planning to invest US$34m (R472m) in the rebuild, which will comprise 135 rooms, including nine residential apartments and villas.