Jarvis Hotels has sold its Ramada Plaza Regents Park Hotel in north-west London to CP Holdings for £60m.
Jarvis chief executive Richard Thomason said: "We can confirm we have reached an agreement with CP Holdings regarding the sale of Ramada Plaza Regents Park hotel. In line with company policy, employees are being kept fully informed of developments."
The four-star, 377-bedroom London hotel has been on the market since chairman John Jarvis and Thomason took the company private in December 2003. Proceeds from the sale will be used to pay back debt.
CP Holdings is the major shareholder in the Hungarian-based Danubius Hotels Group, which will operate the hotel. Danubius will also manage the Crescent hotel in Buxton, Derbyshire, after it reopens in 2007, following a £23m face-lift.