They will then be leased back to the London Inn Group, which will run the hotels. London Inn Group will buy the operating business for £5m, with payment deferred over five years. Whitbread bought the hotels in January 2000, as part of a larger estate of 38 Swallow hotels.

Twenty-three of them have now been converted to the Marriott and Renaissance brands that Whitbread operates under licence in the UK from Marriott International. Alan Parker, managing director of Whitbread Hotels, said: 'These are good, profitable provincial hotels but ones which we knew at the time of acquisition were not suitable for conversion to the Marriott brand.'

Alan Bowes, executive chairman of the London Inn Group, said: 'Swallow remains a recognised and well-respected brand and these hotels are well located with an experienced management in place.'