London pub company Fuller, Smith and Turner has made its second hotel disposal in just over two months.
Fuller's announced today that retailer Tesco had exercised its option to acquire the freehold and leasehold interests in the Master Brewer hotel in Hillingdon, West London for £18.5m.
The 105-bedroom Master Brewer has been trading since 1969 and as of 30 September had a net book value of £4.86m and losses in the half-year period of £30,000.
Fuller's said it would use the cash to add to its estate of 363 pubs and hotels, as well as reduce debt.
In a statement Fuller's said: "The sale will allow Fuller's Inns to retain its focus on its more traditional pubs and hotels businesses comprising its remaining six hotels and the 17 pubs with bedrooms, which form part of the recently combined Fuller's/Gales estate."
In October Fuller's sold its Brigstow hotel in Bristol for £17.09m to Pedersen Hotels.
By Chris Druce
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