The Town House Company, headed by Peter Taylor, has sold two hotels for around £9m to Palm Holdings. The company has disposed of the 18-bedroom Howard and 41-bedroom Channings hotels in Edinburgh. Taylor said that smaller hotels simply didn’t offer the economies of scale required. He added that the company would instead be concentrating on developing the five-star Blythswood Square in Glasgow, as well as seeking out other opportunities for large hotels. Purchaser Palm Holdings already owns the Old Waverley hotel, Princes Street and the Holyrood Aparthotel on the Royal Mile in Edinburgh. Ricky Kapoor, commercial director of Europoint – a subsidiary of the purchasing company – said: “This acquisition now creates a wonderful collection of unique properties to meet the needs of every type of visitor to Edinburgh. “We intend to undertake a refurbishment programme and promote all our hotels under the banner of The Edinburgh Collection.” The sale was handled by Colliers International.