Park Plaza Hotels Europe is believed to be negotiating a £350m sale-and-leaseback deal for its UK and European assets.

The hotel group is understood to be in discussions to sell its bricks-and-mortar assets to hotel investment company Farnsworth.

A spokesman for Park Plaza didn't deny the speculation, but would not "comment further at this stage".

Park Plaza's portfolio currently includes 30 hotels, including two new four-star de luxe properties on London's South Bank, due to open in 2008 and 2010.

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