Lone Star Funds, a Dallas-based buyout firm, canceled plans to sell more than 50 Japanese hotels because it couldn't get its asking price of as much as ¥170 billion, two sources familiar with the proposals said.

The Solare Hotels and Resorts Co. properties were put on the market in December, said the sources, who declined to be identified because the cancellation isn't public.

Lone Star aimed to sell the holdings by the end of March and had attracted interest from Goldman Sachs Group Inc., Blackstone Group and K.K. DaVinci Advisors, which runs Japan's biggest property fund, the sources said.