REGAL Hotels today confirmed it was in talks to buy the chain of County Hotels, including Blackburn's, in a deal believed to be worth around £120 million.

The portfolio of 25 properties includes Burnham Beeches, the occasional residence of the England football team - one of three hotels with golf courses.

Most of its hotels have a three-star rating and are equipped with leisure or health facilities for the "mid-market" client.

County Hotels was involved in a £91 million management buy-out in March 1997 from Queens Moat Houses, but has since seen its flotation ambitions thwarted.

In contrast, Regal has decided to expand aggressively since its attempts to go private failed last October.

Regal, based in Newbury, Berkshire, is regarded as a niche operator and runs 91 three-star hotels throughout Britain.

Any acquisition will be made through a joint venture company, thought to be Duke Street Capital, the venture capital backer of County Hotels.

Regal and the joint venture partner would both be shareholders, meaning it would not be required to raise additional funds for the deal, Regal said.

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