Equity firm in £180m deal for hotel chains

BOUTIQUE hotel chains Malmaison and Hotel du Vin are to be sold to a US-based private equity firm for around £180m.

Colorado-based KSL Capital Partners said the deal will lead to significant investment in the existing portfolio, which includes Malmaison in Leeds, a former bus company office; Hotel du Vin in York, a Grade II listed former orphanage, and Hotel du Vin in Harrogate, which is formed from a row of eight Georgian houses.

The 26 hotels in the Malmaison Group will all change ownership to KSL, which invests in travel and leisure businesses.

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KSL is best known in the UK for its ownership of The Belfry in the West Midlands.

As well as investing in the existing Malmaison and Hotel du Vin sites, KSL plans to expand both chains with the opening of a new Malmaison hotel in Dundee in September and the conversion of an existing property in St Andrews to a Hotel du Vin in early 2014.

The investment will support the development strategy initiated by Malmaison’s chief executive Gary Davis.

He will oversee an extensive renovation programme and expansion within the UK, Europe and international markets.

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Mr Davis previously led the expansion of the De Vere Group’s Village Hotel portfolio and the global expansion programmes at Hard Rock Cafe and Planet Hollywood.

“They have recognised the significant potential in our business,” he said.

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