Quintain Estates and Development has revealed that it has exchanged contracts for the sale of the Plaza Hotel in Wembley, London, to Sojourn Hotels Group for £15m.

The sale price includes a payment worth £1.75m deferred for a year after completion, with the proceeds of the transaction to be used by Quintain to reduce forecast gearing levels.

Quintain is behind the mixed-use Wembley City development and had sought to transform the hotel into residential accommodation as part of plans initially approved in 2004.

However, the group said "changing markets" meant that it was now focussing on a "core leisure and entertainment" element of the scheme, including a new Hilton hotel.

The 306-bedroom Plaza Hotel includes meeting facilities and a gym. The new 361-bedroom Hilton property will offer conference facilities, a fitness suite and a skybar.

Quintain director Max James said: "The disposal of the Plaza Hotel represents the continuation of our strategy of releasing capital from assets where value has been added while creating a vibrant entertainment destination at Wembley."