The Village Hotel and Leisure Club in South Marston has been put up for sale.
Owners De Vere said it was a profitable business but no longer fitted the company's brand profile.
The 60-room hotel, in Old Vicarage Lane, will stay open until a buyer is found.
Its website, Village Hotels & Leisure Clubs, describes its Swindon hotel as "the perfect venue for an exhilarating and exciting break away".
But a De Vere spokeswoman said it did not bring in enough money and would require too much investment to make it conform to the company's 'village concept'.
The decision was not a reflection on the work of the hotel's 130 staff and would not affect the De Vere hotel in Shaw Ridge Leisure Park, she said.
The company is also going to sell the De Vere Bellhouse near Windsor, De Vere Dormy in the New Forest, and its Village Hotel in Prestwich, near Manchester.
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