The legendary Revenge nightclub in Brighton has been sold for £1.5 million.

Tony Chapman, owner of what is now the biggest gay venue in the south-east, confirmed he had signed a deal with leisure company Stagfleet Ltd.

The millionaire, who grew up in a council house in Bevendean, is also in the process of selling his £2 million home in Hove as he expands his hotel interests.

Club Revenge in Old Steine has earned a pivotal place in Brighton life since opening in 1991.

It helped build up a gay scene which today injects millions of pounds into the city's economy.

It has become a favourite nightspot for celebrities including comedian and TV presenter Graham Norton.

Rumours of a secret sale have been rife on the gay scene for several weeks.

Mr Chapman said: "We are still going strong and are one of the most profitable clubs in Brighton.

"But I want to get my life back. I've not had a holiday for 12 years.

"Of course I am going to miss it but you have to sell when the club is right at the top, when the time is right.

"I just woke up one morning and thought, 'I've had enough'.

"It's time to make way for someone younger to have a go."

Mr Chapman said Stagfleet Ltd would continue to run the club as a gay venue under the name Revenge.

He turned down offers from buyers who wanted to turn it into a mainstream nightspot and has also sought an agreement to keep the same staff.

Revenge was named Weekend Club of the Year for two years in a row by gay magazine Boyz.

The club has an annual turnover of £2 million.

Mr Chapman bought the Savannah Club for just £200,000 and opened Revenge to a full house in July 1991.

He will continue to own and run the gay-friendly New Europe Hotel in Marine Parade, home to Legends bar.

Agent John Watkins said the owners of Stagfleet, based at an office in the Sackville Hotel, Kingsway, Hove, did not want to comment until a later date.

Jaq Bayles, organiser of the Pride in Brighton and Hove event, said: "Tony Chapman has generously supported Pride over the years with donations and benefit nights.

"We hope the new owners will recognise the importance of supporting Pride in the same way."