The Ostan na Rossan Hotel, to be renamed the Dungloe Coast Hotel, is to be reopened in March, Dungloe District Court was told.
Mary McGinley, who ran the Harbour Hotel in Burtonport in the past, was giving evidence when an application for transfer of licence was made.
Ms McGinley told Judge Paul Kelly that she was a director of the new owning company, Dungloe Properties ltd, and it was planned to reopen the hotel next March.
She told Garda Supt David Kelly that the company intended to check out the CCTV system and ensure it was available to monitor the hotel and its car-park.
Judge Kelly granted the application. He wished the new hotel owners success in the business.
Chicago-based Kevin Boyle, the President and CEO of the Schulze and Burch Biscuit Company confirmed the purchase of the hotel last weekend for an undisclosed sum.
He is a businessman whose father emigrated from West Donegal in 1946.
It is expected up to 35 new jobs will be created when the hotel re-opens