US investment bank Lehman Brothers is understood to be close to taking control of the owner of Dublin's Shelbourne Hotel.

Le Meridien Hotels, which owns the Dublin landmark along with London's venerable Waldorf and Grosvenor House hotels, is under threat of administration from bankers.

The group has spent the weekend in rescue talks with banks after they demanded restructuring before they would agree payment of a £20 million sterling (€28.8 million) rent payment to Royal Bank of Scotland (RBS), which owns the freehold to 12 of the group's hotels.

RBS acquired the hotels in a sale and leaseback arrangement conducted by then owner, former Nomura banker Mr Guy Hands in 2001.

The banks had set a deadline of Friday for resolution of the stand-off but have continued talks though the weekend in a bid to secure a deal.

The payment is due today.

The 14 banks with exposure to Le Meridien are owed £700 million. Lehman has offered to put £150 million into the group to keep it afloat in a deal that would see the main lenders assuming control of the group.

The Shelbourne is valued at €100 million.