The private equity firm founded by Guy Hands, the veteran financier, is exploring an offer to buy Hotel du Vin and Malmaison, two of Britain's best-known hotel chains.

Sky News has learnt that Terra Firma Capital Partners, which is now run by Mr Hands' son, Richard, is among the suitors who have been in talks with advisers to the chains' owner.

The prospects of a firm deal materialising were unclear on Thursday.

If a transaction did take place, it would be the latest in a string of prominent UK assets to have been owned by Terra Firma.

Among its investments - some of which turned out to be financially and reputationally notorious - were the music company EMI, the care homes operator Four Seasons Health Care and Annington Homes, the former owner of thousands of Ministry of Defence homes

See Full Page