The hotels are currently owned by CDL Hotels International, which in turn is M&C's majority shareholder.

The acquisitions will raise M&C from the status of a regional group, with hotels in Europe and the US, to the world's 20th largest hotel owner.

Kwek Leng Beng, chairman of both M&C and CDL, said the move is not simply a transfer of assets between companies he controls.

He said: "The acquisitions will transform M&C into a key player in the rapidly consolidating global hotel market. With their proven track record, M&C's management team will be well positioned to maximise the enlarged group's profitability."

The purchase is to be funded by a 13 for 20 rights issue at 465p per share to raise approximately ££438 million.

CDL, which owns 52 per cent of M&C, has committed to take up its rights.

The company's chief executive, John Wilson, said: "The acquisitions are of tremendous significance for M&C and are the realisation of a long-awaited opportunity.

"They offer us unprecedented entry into Asian markets which have been traditionally hard to penetrate and, at a time when we are seeing signs of recovery in the region, position us for further international growth."

M&C will have 67 hotels and will double the number of its rooms to 17,339 after adding CDL's 43 hotels in Asia, Australia and New Zealand to its portfolio.

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