The owners of the Belmont Hotel are set to buy the Newstead Hotel, The Royal Gazette can reveal.

Belmont owner Kevin Petty confirmed yesterday that he is in talks to buy the Paget hotel from owners Tony and Dana Goodfellow. It is understood staff at the hotel on Harbour Road, Paget, were told yesterday about the prospective sale.

Rumours have been circulating for years that Newstead has been losing money and was about to be sold, but yesterday Mr. Petty confirmed he was in talks about taking over. Mr. Petty is the owner of Belmont Hills Property Ltd., which owns the Belmont Hotel and golf course, Somers Realty and Somers Management.

In a statement yesterday, Mr. Petty said: "The principals of Belmont Hills Property Ltd., and Newstead Holding Ltd., are currently negotiating the sale of the Newstead Hotel. "Whilst talks are at an advanced stage, a final agreement has yet to be reached.

"The acquisition of the Newstead property by Belmont Hills Property is viewed as an excellent opportunity to combine the two properties and thereby enhance the tourist component of the combined properties."

American Richard Halsey, Mr. Petty's cousin, bought the closed Belmont hotel and golf club in 2001 and is revamping the property to include a 120 bed hotel and 73 residential units.

Mr. Petty said yesterday that he was the principal shareholder of Belmont Hills and Mr. Halsey was also a shareholder. The Royal Gazette was unable to contact Tony or Dana Goodfellow for comment yesterday.