“The contracts in place expire at the end of the year, and there are negotiations to renew them,” the source who is familiar with the matter said in a telephone interview.

The two hotels need to comply with a number of requirements in order to adhere to standards of the US leisure and hospitality giant for the contracts to be renewed, the source said. The parties signed the contracts 15 years ago.

“There are ongoing improvement works just to meet these standards,” the source added.

Hilton Cyprus with a capacity of around 300 rooms and suites is effectively owned by Greece’s Marfin Investment Group via the Cypriot Public Company of Tourist Development Ltd (CPCTD), an acquisition going back more than 10 years ago, while the 194-room Hilton Park belongs to Louis Group. The latter also has a 22 per cent stake in the CPCTD.

The Hilton group did not respond to request for comment.