Dalata Hotel Group is to sell its Clayton Crown Hotel in London to a company controlled by AG Hotels Group for about £21m in cash.
The Clayton Crown Hotel is a 152-bedroom four-star hotel, located in Cricklewood in London.
Dalata said that while the hotel has always performed well, it was no longer deemed a core hotel asset with the company's increasing strategic focus on central locations.
The hotel was acquired by Dalata as part of the Moran Bewley acquisition in 2015.
"The consideration represents excellent value for Dalata and the proceeds will be reinvested in the business," the hotel group said.
The transfer of the business is scheduled to complete by late June.
Dermot Crowley, CEO of Dalata, said today's deal represents excellent value and will assist the company in its continued focus on securing central opportunities in attractive cities of the UK and continental Europe.
"London continues to be a priority for Dalata, and we look forward to opening our new hotel in Shoreditch in the second half of 2023," Mr Crowley said.
"Our immediate focus now, will be to communicate with our employees and assist them with the transition. We will be retaining the hotel management within the Company; all other employees will have the opportunity to apply for vacant positions within Dalata or they can choose to remain in their current roles in the hotel," he added.
In a note, Davy Stockbrokers said today's disposal represents an opportunistic deal and is logical given the age, investment requirements and ESG credentials of the hotel relative to the rest of the Dalata portfolio.
"Dalata's focus is on securing hotels in central locations in attractive cities. Recycling the proceeds from this hotel into more centrally located assets is consistent with this," the stockbrokers said.
"The company is rapidly increasing the quality of its asset base, with six new hotels opening in 2022 across the UK and Dublin plus the refurbished Hotel Nikko in Dusseldorf," they added.