Morgans Hotel Group (MHG) has sold its two London, UK hotels - The Sanderson and St Martins Lane - for £192m (US$295m) to Capital Hill Hotels, a Middle Eastern investor with a number of global hotel holdings.

Morgans owned the hotels in a 50-50 joint venture with Walton Street Capital. The partners have entered into a definitive agreement that will represent a value of around £542,000 per room.

Morgans, which had operated the hotels, will continue to manage the two properties under long-term management agreements. The terms of the management agreements, including extension options, have been extended to 2041 from 2027.

Michael Gross, chief executive officer of MHG said: "Our continued management of these two great London assets and the proceeds from the sale will help provide the foundation for continued growth of our management business and brands around the world.

"We're excited about the extension to our existing management agreements and we look forward to a long-term relationship with our new partner."