London, July 23 (Reuters): US real estate investment firm Starwood Capital is in talks with advisers to launch a bid worth around ?3 billion ($5.5 billion) for UK leisure group Whitbread Plc, the Financial Mail reported on Sunday.

In an unsourced report, the paper said investment bank JP Morgan was believed to be advising Starwood on the deal.

Whitbread declined to comment on the report. Starwood, based in Greenwich, Connecticut, was not immediately available for comment.

Whitbread began a review of its business earlier this year, announcing plans to sell its Beefeater and Brewers Fayre pub restaurants to focus on building 100 new hotels, including expansion abroad, and doubling the number of its Costa coffee shops to 1,000 by 2010.

Whitbread has also announced a review of its TGI Friday and Pizza Hut operations.

Privately held Starwood Capital has a diversified portfolio totalling more than $14 billion in real estate assets. It has led the formation of several companies like Starwood Hotels & Resorts Worldwide Inc, owner of hotel brands, including Sheraton and Westin.