Townhouse Hotel Investments has sold the Dukes Hotel in St James’s, London, to Dubai-based property developer Seven Tides for a reported £40m.

The luxury 90-room hotel, boasting a health club, a cocktail bar and a restaurant, was sold under the advisement of investment management firm Jones Lang LaSalle.

David Naylor-Leyland, managing director of Townhouse Hotels, said: “After 12 years of ownership and considerable investment along with reorganising the management and staff I believe that we have made the Dukes one of the best hotels in London.

“I am confident that Seven Tides will bring new ideas and investment to the hotel and that its worldwide reputation will be further enhanced.”

Seven Tides is presently developing two five-star hotels and apartment projects in Dubai, due to open in 2007.

Townhouse Hotels also recently sold the Franklin hotel in Knightsbridge for £13.5m. Details: www.dukeshotel.com