Private equity giant Blackstone is making a strong push to acquire Village Hotels, a popular mid-market hotel chain valued at £850m. Sources close to the matter have revealed that Blackstone, which holds a vast portfolio of real estate assets in the UK, has submitted a bid to acquire Village.
Joining Blackstone in the bidding war is Sixth Street, another US-based investment firm. This news comes after Sky News exclusively reported earlier this month that Aermont, the majority backer of Pinewood Studios, was also interested in purchasing Village.
The chain, which boasts over 30 locations across the UK, is currently owned by KSL Capital Partners. It is reported that KSL is seeking offers in the range of £850m and has enlisted the help of Morgan Stanley to handle the competitive auction.
This acquisition attempt comes on the heels of recent failed attempts to sell Center Parcs UK and Travelodge. Village Hotels offers budget-friendly accommodations and features pub-style restaurants and gyms at its various locations, from Aberdeen to Bournemouth.
Founded in 1995 as Village Urban Resorts, the hotel chain was acquired by KSL in 2014 from De Vere Group for a reported £485m. KSL, based in Denver, Colorado, has also owned other UK hotel chains such as Hotel du Vin and Malmaison.
When approached for comment, both Blackstone and Sixth Street declined to provide a statement on the matter. Stay tuned for updates as this exciting auction continues to unfold.
