Precinct Investments, owner of Gresham hotels, has increased its offer for Jurys Doyle, despite the sale this week of the group's coveted Ballsbridge site.
Precinct, which earlier this month tabled an improved offer of €16.50 (£11.33) per share for Jurys, has increased its bid to €17.50 (£12.06).
It has also asked the Irish Takeover Panel to grant an extension to today's 5pm offer deadline.
The new proposal represents a 40% premium on Jurys Doyle's share value before Precinct's initial approach.
Precinct's directors said that in the light of yesterday's announcement by Jurys that trading at its Irish hotels was disappointing, that recent new openings were underperforming and that the London terror attacks were having an impact on the group's hotels in the capital, its was certain its new proposals would be very attractive to shareholders.
Jurys announced yesterday that it was selling its 4.85 acre Ballsbridge site in Dublin, which contains the Ballsbridge hotel, Towers and Berkeley Court hotel, for €260m (£180m) to property developer Sean Dunne.
Buy this week's Caterer magazine for more industry news and analysis