Sharjah-based Bin Otaiba Investment Group has acquired the Hyatt Regency Birmingham in the UK for £38.6 million ($50.2 million), a report said.

According to a report in The National, the group is looking to spend another £2.7 million (3.5 million) to renovate the property over the next three years. The hotel will retain its Hyatt Regency branding through a management agreement.

The sale was part of Hyatt’s asset recycling strategy, according to Steve Haggerty, Hyatt’s global head of capital strategy, franchising and select service,

"This transaction allows us to retain brand presence in the market and expand our relationship with an owner who is investing in the Hyatt Regency brand," he said.

"Furthermore, we can expand out portfolio by reinvesting proceeds from sales into new hotels," Haggerty added.

Hyatt Regency Birmingham comprises 319 rooms, a restaurant, gym, spa and terrace bar. It is adjacent to Centenary Square and the International Convention Centre (ICC).