Buyers team up to bid for Forte

Several major hotel groups are believed to be forming alliances in the hope of making bids for Granada Compass's Forte hotels division.

Bass and Millennium & Copthorne are said to be planning a joint £3.5b bid for the group, which consists of the Le Méridien, Posthouse, Heritage and Signature chains.

Millennium & Copthorne is aiming to build a global chain of four-star-plus properties, which suggests its main interest would be Le Méridien. It is expected to sell its Copthorne brand to help fund the purchase.

Whitbread is tipped to be discussing a similar alliance with Marriott, while Burford property group is rumoured to be forming a joint venture with Ian Schrager Hotels to bid for the three London Signature hotels. This bid is thought to be less likely to succeed because Granada Compass has said it would prefer to auction the Forte division intact.

Potential buyers have until Monday (22 January) to make their bids.

By Linley Boniface