The new owners of the former courthouse building on Camelot Street in Thunder Bay, Ont., are planning on turning the historic building into a hotel, the city's tourism manager said.

Paul Pepe wouldn't name the building's new owners — the building was purchased by an Ontario numbered company, and the owners are based in the Toronto area — but Pepe said the goal is to have the new hotel operating by next year.

"It's a beautiful structure," Pepe said. "The views from the windows from all floors of Lake Superior are incredible."

"It has some interesting opportunities to be repurposed."

The building, which housed the Superior Court of Justice for decades, closed in 2014 when the new consolidated courthouse on Brodie Street opened its doors.

Infrastructure Ontario, the crown corporation that manages provincially-owned land and real estate, has been managing the Camelot Street property since then.

On Wednesday, an Infrastructure Ontario spokesperson confirmed to CBC News that the building and land were purchased for $500,000.

How many rooms the new hotel will contain is unknown, but Pepe said the demand is there for more hotels in Thunder Bay.

"We're seeing a continual increase in demand," he said. "We have a healthy accommodation economy here in the city, and it continues to grow modestly every year."

Pepe said the average rate for rooms is rising, too.

The purchase also shows there investor confidence in Thunder Bay, according to Pepe.

"When the private sector has that confidence, it really helps strengthen the economic sustainability of our industry."