An auction to sell Atlantic City, N.J.'s bankrupt Revel Casino Hotel is heating up, with four bidders circling amid a simmering dispute between Revel and lead bidder Glenn Straub, according to a person familiar with the matter.

The auction is set to resume at 1:30 p.m. EDT, and Mr. Straub intends to submit a higher offer than the current high bid of $94 million, Mr. Straub's lawyer told the Wall Street Journal.

"Our...