Private equity investor in real estate Blackstone has reportedly entered into the £850m auction to purchase mid-market hotel chain Village Hotels, according to Sky News.
Alongside Blackstone, city sources stated that US-based investment firm Sixth Sense was also another contender for the deal.
The news comes after Aermont, owner of Pinewood Studios, tabled a bid to buy the hotel chain owned by KSL Capital Partners.
The auction is being handled by Morgan Stanley and according to city sources close to the company, KSL was looking for bids of at least £850m.
Founded in 1995 as Village Urban Resorts, Village Hotels has a portfolio of more than 30 properties from Aberdeen to Bournemouth. The hotels feature pub-style restaurants and gyms.
KSL reportedly paid £485m to acquire the company from De Vere Group in 2014.
Blackstone and Sixth Street have been contacted for comment.