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UK: Real estate investor Blackstone has completed the acquisition of Village Hotels from travel and leisure investor KSL Capital Partners.
Village Hotels owns and operates 33 properties representing 4,400 keys across the UK. In addition to accommodation, the hotels offer fitness clubs, dining venues, and coworking spaces.
KSL purchased the hospitality platform in a deal reportedly valued at £485 million in 2014. While terms of the Blackstone acquisition have not been disclosed, Sky News reported that Village Hotels was valued at £850 million.
James Seppala, head of real estate Europe at Blackstone, said: “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.”
Gary Davis, CEO of Village Hotels, added: “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.”
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, Santander also acted as Blackstone’s financial advisor and 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.
