OXFORDSHIRE-based hotel group Four Pillars has been sold to a US property investment company.

The price was not disclosed, but is believed to be £121m.

Four Pillars founder Brian Murtagh and chief executive Charles Holmes will continue to own a share in the business. Mr Murtagh set up the company in 1973 with developer Peter Morris and builder Jon Ede.

The business, based in Witney, runs five hotels in Sandford-on-Thames, Abingdon, Witney and Abingdon Road, Oxford, and in Gloucestershire, and recently gained planning permission for a £15m 140-bed development at Harwell, which will create 125 jobs when it opens in summer 2009.

The property investment vehicle, RREEF, is owned by merchant bank Deutsche. It will set up a joint venture with the Four Pillars founders to identify and build more hotels, which will be operated under the Four Pillars banner.

Alistair Dixon, of RREEF, said: "We are delighted to be making our first steps into this segment of the UK hospitality market sector through an investment that will take advantage of the UK's steady economic growth.

"Through our partnership with the Four Pillars management team, we have created a solid platform for future investment and intend to build a substantial portfolio over the coming years."

Mr Holmes, who will be chief executive of the new venture, said: "This is a wonderful opportunity for Four Pillars Hotels to grow its portfolio and develop its employees at all levels.

"We welcome RREEF as our new partner and look forward to working closely together to create one of the leading UK provincial hotel groups".

Four Pillars employs 543, spread between the hotels and the Witney head office.