A British private equity firm is reported to be among the frontrunners in the £350 million auction of the Malmaison and Hotel du Vin hotel chains.

TDR Capital, whose investments include David Lloyd Leisure and Stonegate Pub Company, is understood to be one of two or three parties still involved in the process, according to The Times.

Great Eagle Group, the Hong Kong-based owner of the five-star Langham Hotel in London, which was previously tipped as a  suitor, has reportedly withdrawn from the bidding.

Denver-based KSL Capital Partners acquired the boutique Malmaison and Hotel du Vin chains for almost £200 million two years ago.

Since then, the company has undergone limited expansion to 29 properties after a £3 million conversion of a hotel in St Andrews to a Hotel du Vin, the opening of a Malmaison in Dundee, the near-£20 million purchase of Cannizaro House in Wimbledon and its £1 million relaunch under the Hotel du Vin brand.

KSL, which also owns The Belfry, the former Ryder Cup golf venue near Birmingham, recently acquired the Village Urban Resorts chain in a £485 million deal and is tipped to be among the bidders for Gleneagles, the £200 million Scottish golf resort, and Center Parcs.