Dawnay Shore, the owner of Paramount Hotels, is reportedly attracting the interest of several large hotel groups prior to the first round of offers for the company being submitted next week.

Thistles, Piccadilly Hotels (owned by Robert Tchenguiz), the Alternative Hotel Group and Permira, the private equity house, are all understood to be preparing bids worth between £550m and £600m.

Dawnay Shore called in NM Rothschild & Sons and Shore Capital as joint financial advisors last November to undertake a strategic review of the business, which could lead to a transfer of its assets into a Real Estate Investment Trust, but is looking increasingly likely to result in a sale.

The company was established in 2004 by Dawnay Day and Shore Capital and owns 20 UK hotels under the Paramount brand.

Photograph: The Shrigley Hall Hotel, Golf & Country Club, a Paramount Signature hotel