Hilton Group said it was selling 18 UK hotels for at least £400 million and intended to return a "substantial part" of the proceeds to shareholders.

"We anticipate receiving north of £400 million for them," Hilton spokesman Andy Collingridge told Reuters.

Hilton said in February that it was looking at possible asset disposals to raise £300-£400 million, and since then it has exchanged contracts for 11 hotels worth £111 million, seven of which have now been completed.

But yesterday it announced that a further 18 UK and Ireland hotels were to be put up for sale, including the Hilton London Gatwick and the Hilton London Olympia.

"The number of hotels being sold is greater than initially expected, reflecting strong indications of interest from potential buyers," the group said a statement.

"The intention is to sell them and retain long-term management contracts on the buildings," Mr Collingridge added.

Hilton shares rose 2.6 per cent on the news to 294 pence at 1222 GMT, valuing the group at around £4.5 billion.

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