The iconic International Dateline Hotel in the Tongan capital is set to change hands with the Tanoa Group of Hotels in negotiations for its purchase.
The director of finance and property for the parent company, the Reddy Group, G Naidu, says the company is yet to finalise the deal.
Local reports say directors of the Tanoa Group were in Nuku'alofa last week to inspect the property.
The Tonga government resumed ownership of the hotel in November 2012, after it fell into liquidation.
Named for its location, sitting on the 180th parallel, the hotel has changed hands several times in the past few decades.
The CEO of the Tongan Ministry of Tourism, Labour & Commerce, Tatafu Moeaki, said last year that a full redevelopment was required, and engaged the International Finance Corporation, an arm of the World Bank, to advise on its refinancing.