HOTEL operator Hotel du Vin is looking for a site in Oxford following its parent company's rescue by an American private equity firm.

KSL Capital Partners, based in Colorado, said it would invest in expanding the 27-strong Malmaison and Hotel du Vin chains after buying the hotel businesses for an estimated £180m.

Bosses confirmed Oxford along with Bath was on the list of destinations, although declined to be drawn on the exact location.

Spokesman Charlie Jack said: “We are looking closely at Oxford but we are not near to closing any deal at the moment.”

A Hotel du Vin would complement the firm’s existing Malmaison which stands on the former prison site at Oxford Castle and is one of the chain’s top performers with an 89 per cent occupancy rate and employing 80 staff.

The Hotel du Vin chain concentrates on smaller hotels with about 50 rooms — about half the size of Malmaisons — and includes a conversion of the Brakspear brewery in Henley.

The business is currently opening a £10m refurbished Malmaison in Dundee and a new Hotel du Vin in St Andrews, Scotland.

Chief executive Gary Davis said he would “continue its brand development plans including an extensive renovation programme and expansion within the UK, European and international markets.”

Mr Davis said KSL had recognised the firm’s “significant potential”.

He added: “We look forward to leveraging their considerable expertise, which combined with the talent in our own senior leadership team, will further develop our leading hotel brands.”

KSL partner Richard Weissmann added: “Malmaison and Hotel du Vin occupy a strong position in the UK market. With an exceedingly loyal following, we believe each brand has tremendous potential for further growth and expansion. We are pleased to be working with the company’s talented management team.”

MWB Group Holdings, the hotels’ parent company, called in administrators from Deloitte last November after a row over inter-company loans, which meant the firm couldn’t meet its liabilities.