China-based Euro Asia Premier Real Estate Company has entered into a non-binding agreement with a third party to sell the Xin Ju Yuan Hotel in Guangzhou, China.

The buyer will pay CNY72m ($10.6m) for the properties, generating a pre-tax profit of CNY8m ($1.1m) to Euro Asia.

Land adjacent to the hotel will also be sold as part of the agreement.

The buyer’s due diligence is expected to be completed before 31 December 2010, with a binding agreement entered into by March 2011 and final completion of the deal no later than May 2011.

The name of the buyer is yet to be announced.