US private equity giant Blackstone has completed the acquisition of Village Hotels, it has been announced.
Funds managed by Blackstone have snapped up the company from affiliates of KSL Capital Partners for an undisclosed sum.
Village Hotels owns and operates 33 sites across the UK and was put up for auction in February.
It was previously reported that Sixth Street, another US-based investment firm, was also in the race to purchase the business.
‘We see great opportunities to expand’ – Village Hotels boss
Gary Davis, CEO of Village Hotels, said: “With KSL’s support, we have developed a differentiated brand, offering lodging, food, meeting space and health and wellness, ‘everything under one roof’.
“Each hotel attracts over 4,000 local members to our health and wellness clubs, quite unique in the hotel world, with high-tech equipment, fitness class facilities and pools with steam room and sauna.
“A great facility for the business traveller where health and wellness plus work facilities make us best in class.
“With Blackstone we see great opportunities to expand the number of hotels in the UK and further enhance our existing facilities. An exciting time for us all.”
According to its most recently published accounts, for 2022, Village Hotels saw its turnover jump from £139.9m to £227.6m while its pre-tax profits were also cut from £40.9m to £17.8m.
Its results for 2023 are due to be filed with Companies House by the end of September this year.
Haven Holiday Parks owner snaps up hotel chain
James Seppala, head of real estate Europe at Blackstone, added: “We are delighted to add Village Hotels, a standout hospitality brand with a unique business model, to our real estate portfolio.
“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.
“We look forward to partnering with Village Hotels’ seasoned management team and support them as it embarks on its next stage of growth.”
The deal for Village Hotels comes after Blackstone acquired Bourne Leisure in 2021, the owner of Haven Holiday Parks, and Warner Hotels.
Jens Blomdahl, principal at KSL Capital Partners, said: “We are pleased to have partnered with the Village Hotels team to build out a comprehensive hospitality offering and expand their high-quality portfolio — including the addition of more than 1,200 rooms and 45,000 fitness members.
“We look forward to following Village Hotels’ continued success in this new chapter as part of the Blackstone portfolio.”
Lazard acted as Blackstone’s lead financial advisor, and Santander also acted as Blackstone’s financial advisor.
Simpson Thacher & Bartlett and DLA Piper served as Blackstone’s legal advisors.
Morgan Stanley & Co. International plc acted as KSL’s financial advisor and Dentons served as KSL’s legal advisor.