De Vere group has pulled out of the bidding for Premier Lodge, saying the budget hotel chain was too expensive.
The company announced today that it was "no longer a participant in the auction process."
De Vere had submitted a bid in tandem with venture capital firm Sun Capital Partners.
The hotel group added: "The board has always been clear that involvement in an acquisition of Premier Lodge would take place only if it met strict financial criteria."
Chief executive Carl Lever said: "Our involvement in the auction process for Premier Lodge signifies the ambition
of the company, whilst our determination not to overpay demonstrates our financial discipline."
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