US-based hotel group Starwood Hotels & Resorts is understood to have signed the lease to take over the 1,020-bedroom Cumberland hotel in Marble Arch, London.
The Cumberland is one of the 11 Le Méridien hotels owned by the Royal Bank of Scotland (RBS) that were taken back under the control of the bank in July last year.
Although Starwood refused to comment on the story - a spokeswoman for the company dismissed it as "market speculation" - Starwood's name has been linked to the hotel before, and sources close to the deal have confirmed that the group is interested in the property.
Once the Cumberland transfers to Starwood, RBS will be left with just two Le Méridien properties for which to find new operators - the 158-bedroom Victoria & Albert hotel in Manchester, and a 535-bedroom hotel at Heathrow.
Leisure company Whitbread has been linked with the Manchester property, while Scandinavian hotel group Radisson SAS is understood to be eyeing the Heathrow venue.