Dalata Hotel Group has agreed the sale and leaseback of its Clayton Hotel in Cardiff in Wales to M&G Real Estate.
The deal with one of the world's biggest property investors is worth £22.1m and is expected to be finalised by the middle of this month.
Dalata said that the Cardiff hotel will be let on a new fully repairing and insuring lease for a 35 year term.
The agreed initial rent for the property is £1.15m a year and will be subject to five yearly rent reviews.
The Clayton Hotel Cardiff is a 4 star hotel on St Mary Street, in Cardiff city centre. It has 216 air conditioned bedrooms, a bar and restaurant, a fitness suite and extensive meeting room facilities.
The company said the proceeds from the deal will be used to reduce net debt arising from recent acquisitions.
"The sale and leaseback of Clayton Cardiff is consistent with our stated strategy of growing our UK portfolio primarily through operating leases," commented Dalata's deputy CEO Dermot Crowley.
"The hotel continues to perform strongly and this reaffirms our commitment to developing our hotel business within the UK," Mr Crowley added.
