Foster + Partners troubled Silken hotel in London is expected to be sold before Christmas, according to sources close to the situation

The news follows a prolonged period of uncertainty over the 173-bedroom project on Aldwych. After going into administration in July, it is believed the scheme was put on the market for at least £110m in October. Reports also circulated that bank and main creditor BBVA would develop the scheme itself to sell next year after failing to attract interest from bidders.

A source close to the administration process, which is being handled by Pricewaterhouse Coopers (PwC), this week ruled out that option. He said: “There were about 150 initial expressions of interest, which were narrowed to 12 bids and the legal paperwork is being processed for the winning bidder.”

The identity of the developer is not known but it is thought about half of the 12 bids were from the UK. The source added: “This is an icon. There was interest from all over the world.”

Barry Gilbertson, a PwC real estate partner, said: “As receivers, we are delighted with the response to the property coming to the market, with a short sale process and a minimum sale price. Twelve offers shows strong competition and is a very encouraging position.”