Shares in InterContinental Hotels are continuing to climb amid renewed speculation about a takeover offer for the Holiday Inn operator.

The Windsor-based company, which also owns the Crowne Plaza Hotels & Resorts brand, gained almost 5 per cent on Friday and set a new record yesterday after rising more than 5 per cent when trading resumed following the Christmas holiday.

Private equity firms and US-based operator Starwood - best known for Sheraton Hotels & Resorts - have been mentioned as possible bidders for the business. The latest share price rise lifted the market value of InterContinental to more than £4.5bn.

Claire Collingwood, a trader at CMC Markets, said: "The stock currently sits just below 1300p, and with 1500p being seen as a likely bid price we are still seeing some buyers looking for some further upside."

The group owns, manages, leases or franchises, through various subsidiaries, more than 3,650 hotels and 540,000 guest rooms in nearly 100 countries and territories around the world.

InterContinental was for-med by the separation of Six Continents - previously Bass - in April 2003. The restaurant and pubs part of Six Continents became Mitchells & Butlers. The Holiday Inn brand - probably one of the world's most recognised - was created in the 1950s.