Saudi billionaire Prince al-Waleed Bin Talal is in talks to buy the Princess hotel chain from Lonhro Plc for $550 million.

The company said yesterday a decision would be made in the next two weeks.

Lonrho, a UK-based holding company which owns the Princess and Metropole hotel chains, is attempting to sell its hotel interests.

As well as the two Bermuda hotels, the Princess chain includes properties -- ten in all -- in the Caribbean and US. Lonrho's Metropole hotels include five UK properties.

Fairmont Hotels Management Ltd., part-owned by al-Waleed, a nephew of Saudi King Fahd, would manage the properties.

Lonhro had planned to sell its hotels through an initial public share offering. But when the company learned it could raise as much as $155 million more by selling the properties outright, it abandoned the offering. (See Business, Page 36 for more.)