Rocco Forte Hotels has agreed to sell The St David's Hotel & Spa in Cardiff to Principal Hotels for £32.5m.
Rocco Forte Hotels was advised by Christie & Co.
Commenting on the sale Sir Rocco Forte said, "Our original intention was to sell our business in Cardiff but to retain a management contract. However, the sale process has attracted a premium bid from a company wishing to manage the hotel as part of its UK portfolio and it makes good sense for us to accept that bid and have extra resources available for our expansion programme on mainland Europe.
"We leave Cardiff with considerable sadness but I am proud that The St David's Hotel & Spa has played a very important part in the development of Cardiff Bay and has helped to put the city on the tourism map.
"On a personal basis, it means that I will visit Cardiff less frequently and I will miss the many friends who have helped and supported us since the beginning.
"I would also like to thank all members of the staff at The St David's Hotel & Spa and particularly those who have been with us from the early days. They are joining a good company which is also on an aggressive expansion programme and I wish them well."
Unconditional contracts for the sale were exchanged today with completion due to take place on 5 April 2007.
On behalf of Principal Hotels, CEO Tony Troy said, "We are delighted with the addition of The St David's Hotel & Spa to the Principal portfolio as it is a unique hotel in a strategically-important location for us. We look forward to the continued success of The St David's Hotel & Spa and thank Rocco Forte Hotels for their support."