Holiday Corp. sold 26 hotels to a Chicago firm.

Holiday, the Memphis, Tenn.-based parent company of Holiday Inns, said it sold the hotels to VMS Realty Inc. of Chicago for $390 million. As part of the agreement, Holiday Inns Inc. will have a long-term management contract for all 26 properties, Holiday said. Holiday expects to realize after-tax profits of $66 million. Included in the sale are hotels in Oakland, San Francisco, Santa Monica, Van Nuys, Long Beach, Brentwood and Los Angeles.