hostile takeover bid by Granada Group Plc, yesterday announced plans to sell its restaurants and budget hotels in Britain to Whitbread Plc for 1.05 billion ($1.62 billion).

The move came a week after London-based Forte announced a deal to sell its North American Travelodge business to a US group that includes hotel franchiser HFS Inc. for about $170 million.

Forte, hurriedly trying to show shareholders it can raise cash from the company's holdings faster than Granada, has raised about $1.7 billion through asset sales recently.

The deal with Whitbread, a British brewing concern, is conditional on Forte successfully fending off Granada's 3.2 billion ($4.9 billion) buyout bid, launched in November.

Whitbread's purchase would include 127 Travelodge hotels, mostly in Britain; 430 Little Chef and Happy Eater budget restaurants in Britain; 23 Welcome Break highway service centres, which compete with Granada outlets; and Cote France motorway centres in France.

The sale would focus Forte as an international lodging concern with several chains of mid-priced to expensive hotels under the Posthouse, Heritage, Meridien and Exclusive brands, the company said.

Forte is the owner of the Belmont Hotel and Harmony Club in Bermuda. The company recently announced that Harmony Club was also for sale.

"The resulting, highly-focused international hotels company will enjoy a very strong financial position and cash flow,'' said Sir Rocco Forte, chairman.

The Whitbread offer will be put to shareholders at a meeting in late January.

If successful, the deal is expected to close in early March.

Granada is a large broadcasting company whose interests also include leisure businesses. Its bid for Forte expires on January 12.

Key to Forte's fight will be the publication on January 2 of new valuations on its properties and a profit forecast.

The Financial Times said yesterday that the report will show hotel property values up 10 percent in two years. The company would not confirm the report.