LONDON, June 26 (Reuters) - Private equity giant

Blackstone has agreed to buy British hotel operator

Village Hotels, the company said in a statement on Wednesday,

part of a wider investor push into the hospitality sector as it

outperforms the broader commercial property market.

Blackstone said funds managed by the firm had completed an

acquisition of the hotel operator, which runs 33 mid-market

hotels across regional cities and suburbs in Britain.

The company did not disclose the value of the deal. Sky News

has previously reported that the chain was put up for sale with

a valuation of around 850 million pounds ($1.1 billion).

($1 = 0.7895 pounds)