Hotel operator De Vere Group has reported a 21 per cent fall in operating profits for the first half of 2006 to £19.5m from £24.6m in 2005. The group’s Greens fitness clubs incurred a 36 per cent loss in operating profit.

The news comes amid reports that the group – which owns brands such as De Vere Hotels & Resorts, Village Hotels & Leisure Clubs as well as Greens – has attracted a bid from Delancey, the private property group owned by Jamie Ritblat.

It is understood that Ritblat could be preparing a bid for De Vere worth 850p a share, or £710m.

Other bidders include are thought to include US-based hotel operator Starwood Capital, NH Hoteles of Spain and private equity firm Permira. The Blackstone Group has withdrawn from the bidding.

David Richardson, chair of De Vere, said with regard to a potential acquisition: “Discussions continue and a further announcement will be made when appropriate.”