Starwood Capital and Apollo Global Management are the frontrunners in a £1.5bn battle to buy budget hotel chain Travelodge.
The Sunday Times reported that the American investment firms are vying to win control of the company.
Travelodge has more than 500 sites and was expected to draw in bids of at least £1.5bn before the auction deadline at the end of this month.
The sale would be a significant turnaround for the hotel chain, which was taken over by present owners Goldman Sachs, Avenue Capital and GoldenTree Asset Management in 2012 after it faced collapse with debts of £500m.
The consortium has since significantly reduced the chain’s debt following restructuring and the company has undergone a £115m expansion, with earnings rising to £66.2m last year.
Deutsche Bank was appointed earlier this year to advise on the sale, with CBRE advising Deutsche on the property disposals.
