An affiliate of KSL Capital Partners has acquired the Malmaison and Hotel du Vin chains in the U.K.
KSL, a Denver-based private equity firm, plans to invest in the existing 27-hotel portfolio as well as grow both brands, according to Monday’s statement. KSL did not disclose the amount of the transaction, but London newspaper The Times reported that according to anonymous sources it was estimated to be £180 million (US$275 million).
MWB Group Holdings, London, the parent company of the Malmaison and Hotel du Vin hotel chains, announced in November 2012 that the company would enter administration after its 75%-owned subsidiary MWB Business Exchange withheld monthly payments to MWB Group. MWB Group Holdings saw its founder Richard Balfour-Lynn step down in March amid a dispute with the company’s largest investor, Pyrrho Investment, Hong Kong, over the company’s declining share value.
Under current CEO Gary Davis, the company plans to open a Malmaison hotel in Dundee in September 2013 and convert an existing property in St. Andrews to a Hotel du Vin in early 2014.
“Despite the wider challenging economic climate, we are proud of the strong operational and financial position that the hotels currently enjoy,” said Davis, who previously led the expansion of the De Vere Group’s Village Hotel portfolio and was appointed Malmaison CEO in January 2012. “Building on these foundations, we look forward to taking the dynamic brands onward into a period of exciting growth over the coming years.”
Richard Weissmann, a partner at KSL, added, “At KSL, we look for unique travel and leisure businesses with strong management teams to help support and grow. Malmaison and Hotel du Vin occupy a strong position in the UK market. With an exceedingly loyal following, we believe each brand has tremendous potential for further growth and expansion. We are pleased to be working with the company’s talented management team.”