Compass sells two more London hotels for £105m

Compass Group has sold its remaining two London Signature hotels as part of its sell-off of the Forte hotels inherited from its merger with Granada last year. London and Regional Properties, a privately owned property investment and development company, has snapped up the 785-bedroom Strand Palace hotel and the 919-bedroom Regent Palace hotel for £105m in cash, £98m of which is payable on completion. The sale is conditional on the landlord's consent. The hotels will be managed by Hilton but will remain unbranded. London and Regional Properties also owns the Green Park hotel, which is run by Hilton. It is building the 100-bedroom Trafalgar hotel in London, which will open later this year as the first boutique-style Hilton. Compass has raised a total £315m from its four Signature hotels, having sold the Cavendish for £60m to De Vere Hotels in December and the Cumberland for £150m to Nomura in March. The sale of the remaining Forte chains is expected to be completed by mid-April. Bass has been tipped as the favourite to acquire the Posthouse hotels, while Marriott and Nomura are believed to be leading the bids for Le Meridien, and Macdonald Hotels for the Heritage chain.