Discount hotels specialist LateRooms.com has been sold by tour operator Cox & Kings for £20 million.
Cox & Kings, which acquired Manchester-based LateRooms for £8.5 million from Tui Group in October, has sold the business to newly-incorporated company Malvern Enterprises UK.
Additionally, Holidaybreak, which is 66% owned by Cox & Kings, has sold York-based Superbreak to Malvern.
Holidaybreak has received £9.3 million in the transaction although the sale will also lead to a £71.4 million write-off in relation to the goodwill of Superbreak.
Cox & Kings said: “The transaction will enable Malvern to independently follow its own strategic growth path in the underpenetrated city breaks market within the online package tour space.
“Brands Superbreak and LateRooms are likely to gain substantially from a unified management team under the strategic guidance of the private equity investor and Cox & Kings.”