TWO of Glasgow’s best-known hotels look set to be acquired by Intercontinental Hotels Group (IHG) as part of a wider grab for as many as 12 UK city centre hotels.

IHG is reported to have joined forces with a major property investor to join an auction for The Principal Hotel Company, which owns The Blythswood and Grand Centre Hotel in Glasgow. The company also operates Principal Edinburgh George Street.

Principal’s owner Starwood Capital Group has put the company up for sale through a £1.2 billion auction, though IHG is believed to only be interested in bidding on Principal’s city centre venues.

The Blythswood Hotel is the former home of The Royal Scottish Automobile Club. It was transformed into a luxury five-star hotel by entrepreneur Peter Taylor, opening in 2009 following a £24 million redevelopment. Mr Taylor’s Town House Collection sold the hotel to US-based Starwood Capital in 2015.

IHG is the UK-based hotel operator behind the Holiday Inn chain. The FTSE 100 business yesterday extended its luxury offering with the acqusition of a 51 per cent stake in Regent Hotels and Resorts.