The Exeter hotel was one of six finalists in the category, beating competition from London's Mandarin Oriental Hyde Park, The Savoy, The Arch London, The Zetter Townhouse and Blythswood Square in Glasgow.
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General manager Fiona Moores and sales manager Jo Thomas, were at the ceremony when the announcement was made.
Ms Moores, said: "Words cannot express our elation at being named as City Hotel of the Year. The calibre of the other finalists was so high that to have been named as the winner is really fantastic."
The Magdalen Chapter has made a huge impact both regionally and nationally since it opened in June last year. The hotel, with its top restaurant and luxury REN spa, has become a popular destination for both locals and visitors alike.
Formerly the West England Eye Hospital, the 19th century building was sympathetically restored by Kier and architects Fielden Clegg Bradley, to become an intimate and stylish hotel.
(CD/JP)
