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The China Post Group has signed an agreement to sell some of its hotel assets to a chain hotel operated by Hong Kong-listed VXL Capital Ltd.

The report did not provide financial details of the deal, which involves the sale of 11 China Post Group hotels.

State media has previously reported that China Post Group planned to sell hundreds of its loss-making hotels, as part of a move to retreat from the industry to focus on its core businesses.

China Post Group is a 10 billion US dollars company formed out of the old State Postal Bureau. Once its restructuring is completed its businesses will mainly include express services branded EMS, newspaper distribution, postal remittances, savings, logistics and the issue of stamps.