LEISURE firm De Vere, which owns Southampton's flagship Grand Harbour Hotel, is under fresh pressure to sell its UK hotels after a major investor upped its bid for a larger stake in the group.

Disposal of the hotels would raise more than £550m at a time when the entire company is valued

at around £501m, according to some figures.

GPG Holdings, which already owns ten per cent of De Vere shares, yesterday urged investors to accept its new offer of 430p per share for a further 25 per cent of the company which also owns the world-famous Belfry golf complex.

The decision to raise its proposal from 415p per share came after less than one per cent of investors in De Vere had agreed to sell their stake.

GPG accused De Vere's board of treating shareholders "with disdain" by refusing to

confront the issue of selling the 21 hotels, which also include Brighton's famous Grand Hotel.

De Vere board members have pledged to use their 14 per cent stake in the company to oppose the offer. They described the offer from GPG as a distraction, saying their strategy was to review each of the 21 hotels on a site-by-site basis than sell them off in one big chunk.

In addition to its portfolio of hotels, De Vere runs 15 health and fitness clubs trading as Greens, 14 village leisure clubs and distillers G&J Greenall.