Proceeds from the £150m deal will be used to return up to £85m to shareholders.

Chairman John Jarvis said: ‘Today's announcement is a considerable achievement after the disruptions and delays we have had to overcome since first announcing the conclusions of our strategic review more than a year ago. The sale-and-leaseback continues our programme to re-position Jarvis Hotels as a hotel management services group.’

He added: ‘The future for Jarvis Hotels is now clear. We are strategically well positioned as operators of a range of international hotel brands, and are continuing to demonstrate the strength of our management team.’