The Peat Inn, near St Andrews, was put on the market last March.

Specialist business property adviser Christie & Co has now said the business has a freehold guide price of £1,950,000. Lease terms are also available.

Built in the 18th century, The Peat Inn has a rich history spanning more than 250 years, having previously operated as a coaching inn, hotel and public house. The business has been owned and operated by Geoffrey and Katherine Smeddle since 2006, who established it as one of Scotland's most respected hospitality destinations.

The restaurant comprises three dining rooms with space for around 50 covers, and eight luxury guest suites and a four-bedroom owners' accommodation.

During their ownership, the Smedldles have undertaken extensive refurbishment and modernisation works, while preserving its original character and charm, including the feature fireplace within the reception area.

Mr Smeddie said, “Owning my own restaurant and achieving a Michelin star was a lifelong ambition. Having had the privilege of being the chef and owner of The Peat Inn for over 20 years, and with the restaurant continuing to perform at a high level, I feel this is the right time to pass the opportunity on and explore a new chapter.”

Christie’s said it was a unique opportunity to take on a landmark hospitality venue in Fife.

Simon Watson, senior business agent, said: “The business is available either as a freehold acquisition or on a new leasehold basis by negotiation, providing flexibility for a wide range of buyers.

“The freehold opportunity will appeal to those seeking long-term ownership of a landmark hospitality asset, whilst the leasehold option offers a more accessible route for experienced operators and ambitious chef-owner occupiers looking to take on an established and highly regarded business.

“With its exceptional reputation, luxury accommodation, owners' accommodation and enviable location close to St Andrews, The Peat Inn presents a unique opportunity to build upon an already successful operation. Opportunities of this calibre are exceptionally rare, and we expect strong interest from across the hospitality sector."