An investigation into a complaint about East Devon district council's handling of the sale of Elizabeth Hall in Exmouth has found no evidence of fault.
The council-owned building was sold to Whitbread a year ago after the company emerged as the preferred bidder out of three possible buyers.
One of the bidders complained to the Local Government Ombudsman that they believed one of the selection panel had indicated a preference before the tender process was complete.
The council has welcomed the ombudsman's findings and apologised for the cost to the public purse.
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