Blackstone, the prominent private equity investor in real estate, has entered the £850 million auction to acquire Village Hotels, a mid-market hotel chain.

Blackstone, which holds property assets in Britain worth billions of pounds, has made an offer to purchase Village Hotels.

City sources reported on Wednesday that Sixth Street, another US-based investment firm, is also competing for the acquisition.

Earlier this month, it was disclosed that Aermont, the majority backer of Pinewood Studios, is among the potential buyers for Village Hotels.

The hotel chain, which operates over 30 locations, is currently owned by KSL Capital Partners.

KSL is reportedly seeking offers around £850 million, with bankers at Morgan Stanley managing the auction process.