The US investor today completed the purchase of the mid-market Village hotel chain – comprising of 25 properties with three under construction – for £485m.
KSL said it plans to invest heavily in the brand to ‘reinvigorate’ the existing portfolio and expand it further in the UK.
“Village occupies a unique position in the UK market because of all it has to offer consumers,” Coley Brenan, a principal at KSL.
“With a very strong following and thousands of loyal members, we believe Village has tremendous potential for future growth. We are very pleased to add Village to KSL’s portfolio of investments in the UK.”
Maimaison and Hotel du Vin
The Village hotel deal follows KSL’s acquisition of the 46-bedroom Cannizaro House on Wimbledon Common earlier this month, with plans to re-open it under the Hotel du Vin brand.
However, according to a report on Sky News, the firm has begun a strategic review of the Malmaison Group, which is expected to lead to the sale of the Malmaison and Hotel du Vin hotel chains.
Profits from the group have improved considerably under the leadership of Gary Davis, who was installed as chief executive in 2012.
Malmaison and KSL could not be reached for comment.
De Vere strategy
The disposal of Village Urban Resorts marks the completion of De Vere’s ‘build and crystallise value’ strategy, which the firm said has delivered sale proceeds in excess of £1bn and ‘effectively also saved several thousand jobs’.
Other strategic disposals included the sale of meeting and events provider De Vere Venues to Starwood Capital for £232m and the recent sale of six properties to QHotels.
De Vere chief executive Andrew Coppel, said: “We are delighted to have achieved this overall result following the financial restructuring in 2010 and the creation of a new board in 2011.
“The support of Lloyds Bank in particular from late 2011 was critical, as this enabled the team to build value within three quality businesses and realise premium prices on disposal.
“To generate over £1bn of sale proceeds in challenging market conditions reflects well on the team. It represents a vindication of our strategy and the Lloyds Bank’s confidence in the company.
“VUR is now in great shape and has forward momentum with the openings in December and the New Year of properties in Aberdeen, Edinburgh and Glasgow. Its future is positive, undoubtedly enhanced by KSL’s commitment to invest substantially in the existing portfolio and pipeline.”