US venture-capital group Blackstone is to buy Wyndham International hotel group in a deal worth $3.24b (£1.78b).

Blackstone is offering Wyndham $1.15 per share in cash. This is 19% above the group’s share price on close of trading last Monday.

The New York luxury hotel group has sold 185 hotels in the past five years in a bid to decrease debt and expand its core brand.

Wyndham’s losses increased from $389.6m (£213.98) in 2003 to $509.5m (£279.84) last year. They currently own only one European hotel, the 267-room Great Eastern Hotel in London.

“Wyndham has followed a strategic approach to simplify our corporate structure, refinance our debt and sell non-strategic assets,” said Fred Kleisner, Wyndham chairman.