The company now wants to focus on its vending and food service businesses.

"We have taken the view that neither business is core to Compass Group's strategy going forward and that it is appropriate to pursue these disposals," chief executive Michael Bailey said in a statement.

The company inherited Travelodge and Little Chef following the demerger from Granada last year.

Travelodge and Little Chef generated turnover of about £300m last year and operating profits about £100m.

Compass has developed a strong contract catering business - feeding staff at the BBC, Boeing, IBM, Philips and American Express.