Dorsett Hospitality International has agreed to sells one of its hotels in Hong Kong.

Under the agreement with Golden Wheel Jasper, Dorsett will sell Silka West Kowloon for a total of HK$450 million (approx. US$58m). The hotel group will then enter into a management agreement for the hotel, allowing it to continue to be operated under the midscale Silka brand.

Silka West Kowloon is located on Anchor Street in Kowloon, on Hong Kong’s mainland.

“The sale is yet another example of our proven track record in successful monetisation of hotel assets, and is consistent with the group’s strategy of disposing smaller and non-core hotel properties. It enables the group to release hidden value in our hotel portfolio accumulated over the years,” said Chris Hoong, managing director of Far East Consortium (FEC), Dorsett’s parent company.

FEC said that the net proceeds of the sale would be “retained as capital for the group’s business development and general corporate purposes”.