Pat McDonagh bought the hotel in a move which, he said, would safeguard more than 100 jobs in the town.
It becomes the third hotel to have been bought by the businessman in recent times, following the purchase of the Castletroy Park Hotel in Limerick and the Lough Rea Hotel and Spa in Co Galway.
Mr McDonagh said: “We are delighted to be safeguarding jobs locally which may otherwise have been lost.”
He said the hotel, located on the Cork-Limerick border, was “a landmark stopping-off point” on the N20 route. He also said he would embark on a significant investment programme to upgrade the facilities.
“We are thrilled to be able to provide such an employment boost to the town and look forward to working with the team in the hotel.
“We plan to invest in excess of €1m to upgrade the infrastructure and design features, making it even more comfortable for guests.”
A spokesperson for Mr McDonagh said the hotel had been in receivership and that the sale took almost a year to complete.
Work is due to begin on the upgrading of its facilities in the next few weeks.
The four-star hotel has 91 rooms and five executive suites, as well as a conference centre and 25m swimming pool.
Its purchase marks the latest venture for the businessman, who founded Supermac’s in 1978, and has seen the chain grow nationally to now more than 100 branches, including in Charleville.
Bank of Scotland had appointed a receiver to the hotel in May 2012, and it was for sale with a price of €3.75m. However, it is understood the hotel may have been sold for over that amount given the level of interest from different bidders.
Last year, Mr McDonagh opened the Barack Obama Plaza in Moneygall on the Offaly-Tipperary border, with the M7 motorway service facility also incorporating a museum commemorating the US president’s visit to Ireland. It cost €7m and created 60 jobs in the area, while also winning a prize at the Irish Forecourt and Convenience Retailer Awards.