Blackstone has completed its deal to buy KSL Capital Partners’ Village Hotels portfolio.
Village Hotels owns and operates 33 hotels in large regional cities and suburban areas across the UK. The portfolio has 4,400 rooms and offers full-service hotel stays, fitness clubs, food and beverage outlets and co-working spaces.
KSL reportedly put the chain up for sale with an £850m price tag. Other suitors included Sixth Street and Aermont, according to Sky News. The sale price was not disclosed.
James Seppala, head of real estate for Europe at Blackstone, said: “We see great potential in lodging and leisure as a sector, especially where we can support strongly positioned businesses that deliver exceptional experiences to their customers.”
Gary Davis, chief executive of Village Hotels, said the business saw “great opportunities to expand the number of hotels in the UK and further enhance our existing facilities” with Blackstone on board.
He added: “With KSL’s support, we have developed a differentiated brand, offering lodging, food, meeting space and health and wellness – ‘everything under one roof’.”
Blackstone said it is a “long-term believer” in the UK leisure sector, driven by consumer demand for high-quality experiences and services. In 2021, Blackstone acquired Bourne Leisure, which owns caravan operator Haven Holiday Parks, and Warner Hotels, which caters exclusively to adults in the UK. Since acquisition, the firm has invested more than £550m across both brands for site and entertainment upgrades and expansions.
Lazard was Blackstone’s lead financial adviser. Santander also acted as Blackstone’s financial adviser and Simpson Thacher & Bartlett and DLA Piper served as its legal advisers. Morgan Stanley acted as KSL’s financial adviser and Dentons as its legal adviser.
Photo © Vojtech Bruzek/Unsplash
Send feedback to Pui-Guan Man
Follow Estates Gazette
