Hotels boss Richard Balfour-Lynn upped his offer for De Vere as the battle for the operator of the Belfry golf complex intensified.
Mr Balfour-Lynn - chief executive of Malmaison and Hotel du Vin owner Marylebone Warwick Balfour - tabled an improved £745.4 million for De Vere amid continued interest from private equity firm Permira.
The 850p-a-share bid was three per cent higher than the 825p-a-share offer accepted by De Vere last weekend.
It came after Permira said it was considering making a rival bid and urged De Vere shareholders to take no action over the earlier offer, which valued the company at £423.5 million.
The De Vere board said the new offer was "fair and reasonable" and "in the best interests of De Vere shareholders".
Mr Balfour-Lynn tabled the bid through his privately owned investment firm Alternative Hotels Group.
De Vere operates 19 hotels including the Belfry golf and hotel complex and also has a string of Village leisure hotels, the health and fitness brand Greens and gin maker G&J Greenall.
The De Vere board said that subject to clearance from the Pensions Regulator it would unanimously recommend the AHG bid to its shareholders.
Before last weekend's initial agreement with AHG, Permira said it was prepared to bid up to 840p-a-share for De Vere but the board is understood to have dismissed the indicative offer as too conditional.
Investors welcomed the improved offer and the prospect of a bidding war between AHG and Permira.
The stock has soared from 550p in the past year on the back of the takeover interest.
Marylebone Warwick Balfour owns the five star Park Lane Marriott hotel as well as its 15 Malmaison and Hotel du Vin outlets which have sites in Birmingham.