Dawnay Shore Hotels (DSH) has agreed to Spanish hospitality group Barceló leasing and managing its Paramount Hotel portfolio.

The hotel group – established by Dawnay, Day and Shore Capital in 2004 – owns and operates a chain of twenty four- and five-star hotels in the UK.

Shore Capital’s chair Howard Shore said: “We are delighted to have concluded this value-enhancing transaction after a careful review of all the options. Shareholders will be able to crystallise the benefits of their investment while continuing to benefit from significant real estate potential.”

The 45-year agreement has increased DSH’s portfolio to £556.25m and will permit further investment development in the hotel sector as well as a return of capital to shareholders.