Tianjin Development Holdings Ltd. said Tuesday it agreed to buy from its controlling shareholder a four-star hotel in Hong Kong managed by Marriott International Inc. for HK$825 million.

Tianjin Development, the investment arm of the Tianjin municipal government, said in the statement it agreed to buy Courtyard by Marriott Hong Kong, which has 245 rooms with a total gross floor area of 11,472 square meters, from Tsinlien Group Co.

Tianjin Development said it plans to issue Tsinlien 31.85 million new shares at HK$8.32 each, totaling HK$265 million, to fund part of the acquisition. It plans to pay the remainder of the amount in cash.

The new shares represent 3.08% of Tianjin Development's existing issued share capital and 2.98% of its enlarged share capital.

The share sale price represents an 8.7% discount to its closing price Friday of HK$9.11. The stock was suspended from trading Monday and will resume trading Tuesday.

Tsinlien's stake in Tianjin Development will rise to 53.40% from 51.97% upon completion of the share sale.