UK company Dawnay Shore Hotels (DSH) is to lease its Paramount Hotel chain to Spanish company Barcelo.
DSH owns and operates a chain of 20 four and five-star hotels in the UK.
Under the terms of the 45-year leasing agreement, Barcelo will takeover management of the chain.
Barcelo will pay £28m for the first year of the lease, rising to £31m-34m, depending on the performance of the chain, in four year’s time.
After five years, the lease will be linked to inflation and profitability.
DSH says the arrangement will provide a steady income, allowing it to further add to its property portfolio.
Barcelo manages and operates over 130 hotels in 14 countries.