The leisure group, whose businesses range from Prem­ier Travel Inn to Costa Coffee and the Beefeater pub-restaurants, is selling David Lloyd to London & Regional, the property company that owns Next Gener­ation Clubs.

It said it would initially use the proceeds to cut debt, but there is speculation among analysts that Whitbread may buy the Jurys Inn hotel chain instead of returning cash to shareholders.

“Following the success of the management action taken at David Lloyd Leisure during the past 18 months and a review of the health club market, we have decided this sale represents excellent value for our shareholders,” said Whitbread chief executive Alan Parker.

“Whitbread is now well placed to deliver the ambitious growth plans for its hotels, restaurants and coffee shops.”

David Lloyd has 60 clubs in the UK and Ireland and nine on the Continent. Member­ship totals more than 370,000. Last year it made operating profits of £37.1million on a £237.3million turn­over.

London & Regional, controlled by the Livingstone brothers, may split David Lloyd into separate operating and property companies.

Whitbread’s property portfolio has made it a favoured candidate for a takeover.