Rocco Forte Hotels is selling St David’s Hotel & Spa in Cardiff to Principal Hotels for £32.5m.

The sale will fund further expansion of the brand in Europe, with hotels already under development in Munich, Geneva and Prague. A golf resort is also due to open in Sicily next year.

Sir Rocco Forte said: “Our original intention was to sell our business in Cardiff but to retain a management contract. However, the sale process has attracted a premium bid from a company wishing to manage the hotel as part of its UK portfolio and it makes good sense for us to accept that bid and have extra resources available for our expansion programme in mainland Europe.”

Unconditional contracts for the sale have been exchanged, with completion due to today (5 April).

Principal Hotels’ CEO, Tony Troy, added: “We are delighted with the addition of St David’s, as it is a unique hotel in a strategically important location for us. We look forward to the continued success of the hotel thank Rocco Forte for their support.”

Rocco Forte was advised by Christie & Co.