Peel Hotels has sold the Avon Gorge Hotel in Bristol to Swire Properties Hotels Holdings for £15.5m.

The sale of the recently modernised 76-bedroom Victorian Hotel, which also includes the associated staff house at 10 Caledonia Place, was completed on 4 September.

The company also announced the disposal of three quarters of an acre of land with planning permission for 99 apartments, office space and associated car parking in Salem Street, Bradford, to a private buyer for £2m.

Chair of Peel Hotels, Robert Peel said: “In simple terms the net effect of the asset sales announced today will be to leave the company totally debt free at a time, perhaps when there is upwards pressure on the cost of borrowing and downward pressure on the value of assets. This environment should give the company acquisition opportunities going forward.”

Swire Properties Hotels Holdings is a subsidiary of the Hong Kong property company, Swire Properties, which is part of the internationally established Swire Group.