Everards, the independent family brewer and pub operator, is to exit managed pubs to focus on its tenanted division.
The Leicester-based company said the managed estate lacked the critical mass and the branded focus needed to deliver significant returns to the group.
"These are very good managed houses," said group managing director Nick Lloyd. "But central costs associated with the managed estate meant that it was only delivering half the returns of the tenanted estate."
Everard's will transfer most of its 36 managed outlets to tenancy by September, with seven hotels earmarked for disposal.
Mr Lloyd said the company could bankroll an additional 40 tenanted pubs through the sale of the hotels, which would propel the estate to 183.
Mr Lloyd said the sensitive issue of job cuts was currently being assessed.
Everard's, which brews Tiger Best Bitter, hopes to complete the transfers by September. The company operates within a 70 mile radius of Leicester. It plans to build a higher-concentrated estate around the city.
The Everard's Brewery, which has annual sales of about £40m, is 90 per cent owned by members of the founding family. The company, which also brews Beacon Bitter and Original Ale, sells 40 per cent of its beers outside of its pub estate.