Directors of the Jurys Doyle Hotel group are scheduled to meet tomorrow to discuss whether to finally sell the company's Ballsbridge site, which is believed to be worth at least €200 million.

After months of speculation about the site, sources told The Irish Times over the weekend that there was increasing support within the company for selling the eight-acre site and then leasing back a four-star hotel that would be built within a new residential development.

The proceeds of the sale could then be used to refurbish other hotels and further expand the company's inns brand, sources pointed out.

If the company finally agrees to sell the site this week, a large number of building firms would come forward as purchasers. Several companies are not interested in buying the hotel chain itself, which consists of 33 hotels in Ireland and Britain, but would like to develop the Ballsbridge site.

Jurys declined to comment on suggestions that a sale announcement might be imminent. An official spokesman simply stated: "A board meeting is scheduled for Tuesday. The review of the Ballsbridge site is ongoing and the review will be discussed".

The company has been reviewing the future of the site for more than a year, but the recent takeover approach from the Precinct group for the whole chain has concentrated minds among some directors.

Property interests regard the Ballsbridge site as one of the most promising in the Republic. Its strategic location in the heart of Dublin 4 makes it ideal for residential development.

The Dublin market is currently waiting to see if the Precinct group submits another bid for Jurys Doyle.

Jurys recently rebuffed a €15.25-per-share offer, but some sources believe an offer of €16.20-€16.50 might attract the support of some significant Jurys shareholders.

The Jurys board said the first Precinct bid failed to "reflect the value of Jurys Doyle and its prospects". The shares closed on Friday at €15.50.

Any bid will need the support of long-standing shareholders in the company which own almost 30 per cent of the equity. For example Bernadatte Gallagher owns 8.3 per cent of the shares, while her sister, Eileen Monahan, has a 6.8 per cent stake.

Meanwhile, it is understood that, at this point, there has been no approach to Jurys board from the Blackstone Group, one of the world's largest private equity firms. Several Sunday newspapers picked up reports from US online sources suggesting that the group would enter the race to buy the hotel group.