Food and drinks giant Diageo, which owns the luxury hotel, has resolved to keep hold of it after it failed to receive a high enough offer.

Situated between Perth and Sterling, the 234-room hotel employs 600 staff is famed for its three championship golf courses and was the location for King Hussein of Jordan's honeymoon.

Unsolicited inquiries

The company announced in August that it was open to offers for Gleneagles and appointed Lazard Brothers, its financial adviser, to handle the process.

The decision followed a number of unsolicited inquiries from potential bidders.

Announcing that the 'For Sale' sign was to be taken down, Diageo's chief executive John Mcgrath, said: "We have concluded that Gleneagles can deliver more value to Diageo's shareholders as part of the group."

Diageo is the biggest spirits company in the world

Gleneagles is the only hotel owned by Diageo and dates back to the acquisition of whisky company Arthur Bell by Guinness in 1995.

Diageo was formed from the £24bn ($40bn) merger of Guinness and Grand Metropolitan last year.

The hotel was built by the former Caledonian Railway company following the opening of the Gleneagles railway station. Opened in 1924, the hotel was transformed into a hospital in World War 2 to treat the returning wounded.

Diageo's share prices rose 11.5p to 623.5 on Friday.