Center Parcs has declined to comment on reported that it is considering acquiring smaller rival Forest Holidays.

Center Parcs, which operates five resorts across the UK, was reported by Sky News to be among a number of suitors for Forest Holidays, which has been put up for sale by its private equity owner.

Forest Holidays is jointly owned by the Forestry Commission and LDC, the private equity arm of Lloyds Banking Group, and trades from nine sites across the UK.

The company pays rent to the Forestry Commission based on each cabin it operates.

Center Parcs is already pursuing an expansion plan that includes the opening of a resort in Ireland, while the wider domestic holidays sector has seen significant corporate activity with the £1 billion merger of Park Resorts and Parkdean Holidays.

The company created from that merger, Parkdean Resorts, is also expected to lodge a bid for Forest Holidays, according to City sources.

Acquired by Brookfield Property Partners in 2015 for £2.4 billion, Center Parcs continues to report quarterly results under the terms of its financing.

It said recently that in the 12 weeks to July 13, it recorded a 5% rise in group revenue to £99 million, with earnings before tax, interest, depreciation and amortisation up 4.6% to £45.2m.

A spokesman for Center Parcs declined to comment on Tuesday.