Blackstone Real Estate has completed the acquisition of Village Hotels, the hotel owner, operator and developer. Funds managed by Blackstone have acquired Village Hotels from affiliates from KSL Capital Partners.
While financial terms of the deal were not disclosed officially, Blackstone is believed to have paid around €800 million ($857.16 million) for the deal.
Village Hotels owns and operates 33 hotels, totaling 4,400 keys, in large regional cities and suburban areas across the U.K. Every Village Hotels property operates as an “all under one roof” leisure destination, offering traditional full-service hotel stays, fitness clubs, food and beverage outlets, as well as co-working spaces.
Village Hotels has a “unique business model” and has a seasoned management team, Blackstone said in statement.
“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,” said James Seppala, head of real estate Europe at Blackstone.
Every Village hotels property attracts more than 4,000 local members to its health and wellness clubs, which feature high-tech equipment, fitness class facilities and pools with steam room and sauna, Blackstone said.
“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 U.K. and further enhance our existing facilities,” said Gary Davis, CEO of Village Hotels.
Lazard and Santander advised Blackstone on the deal, while Morgan Stanley  and Dentons represented KSL.
Blackstone has been expanding its presence in the U.K. hospitality sector, encouraged by consumers’ demand for high-quality experiences and services. The investment management company acquired Bourne Leisure, the U.K. holiday company and owner of Haven Holiday Parks and Warner Hotels, in 2021. Since the purchase, Blackstone invested more than £550 million ($695.44 million) on both brands for site and entertainment upgrades and expansions, growing Bourne Leisure into one of the largest providers of holiday experiences and holiday homes in Britain.