Action acquired the 5,550 square metre plot for US$10.1mln back in February 2016, and the original plan was to develop it into a three- or four-star hotel.
That hasn’t materialised though, and the company recently decided to seek out a buyer in order to free up some working capital which can be used to develop other hotels in its pipeline.
As announced in last month’s interim results, the company wrote down the value of the land by US$3.8mln.
Including that adjustment and all fees associated with the sale, Action expects to record a small loss of around US$0.6mln from the disposal.
“This conditional sale and purchase agreement will provide additional working capital to the group to continue its development plans and pipeline of hotels in the Middle East,” said chief financial officer Andrew Lindley.
“The board of Action Hotels assessed holding the investment land against the long-term cash requirements of the group and decided to exit the investment.”
Shares were unmoved at 22.8p on Tuesday.