HBOS and Royal Bank of Scotland, the backers of UK hotel holding company Vector Hospitality are set, along with some of the managers of the business, to invest £140m (€206m) in its £2bn London flotation.

The flotation of Vector Hospitality, founded by UK property magnate Richard Balflour-Lynn, will make it one of the largest floated UK hotel companies, and the first specialist hospitality real estate investment trust to list in London.