The SAS Group is to sell its 75% stake in Rezidor SAS Hospitality when the hotel group aims to float on the Stockholm Stock Exchange later this year.
The Carlson Group which owns the remaining 25% of the group has said it will increase it stake to 35%.
No new Rezidor shares will be issued and Carlson will buy at the Initial Public Offering (IPO) price.
The hospitality company has already changed its name to Rezidor Hotel Group in preparation for the IPO which was first announced in June.
Gunnar Reitan, acting president and ceo of SAS Group, said: “Listing Rezidor on the Stockholm Stock Exchange benefits all parties.
"For Rezidor, it is a logical move as it prepares for its next stage of development and for SAS, the listing of Rezidor is in line with SAS's stated strategy of focusing on core airline activities."
Rezidor also announced its results for the first none months of 2006 which showed a 24.3% increase in operating revenue from 419.7m to 5521.9m.
There was an 82% increase in operating profits from 15.3m to 27.9m. RevPAR rise during the period by 7.5% from 67 to 72.
Rezidor brands include Radisson SAS, Park Inn, Missoni, Country Inn and Regent.
Lufthansa profits rise by 46.7%
German flagship carrier Lufthansa reported a 46.7% rise in operating profits to 691m for the first nine months of the year.
Group revenue for the period was 15bn, a growth of 12.9%. During the nine months, the airline carried a record 40m passengers.
Wolfgang Mayrhuber, chairman and ceo of Lufthansa, said the carriers was not only on course to achieve its planned savings of 1.2bn by the end of 2006 but was also set to make 750m profit for the year.
Mr Mayrhuber also said the airline was expanding and would take on 2,500 extra employees during the year.
Mr Mayrhuber said: "All segments have operated successfully, strengthened their customer base and scored well with new products. The systematic orientation to profitability and the respective core competencies is paying off."
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