Sky News has learnt that KSL Capital Partners has started drawing up plans for an exit from the investment.

The timing and valuation of any deal were unclear on Friday.

Village Hotels comprises a portfolio of 33 properties from Aberdeen to Bournemouth, with rooms available at budget prices.

Founded in 1995 as Village Urban Resorts, the hotels feature pub-style restaurants and gyms.

KSL was reported to have paid £485m for the business when it bought it in 2014 from De Vere Group.

The Denver, Colorado-based buyout firm has also owned other UK hotel chains including Hotel du Vin and Malmaison.

One hotel industry executive said advisers were likely to be appointed to oversee a sale in the near future.

It is expected to draw significant interest from a pool of financial buyers.

A KSL spokesman declined to comment.