KSL invites offers on Malmaison and Hotel du Vin Chains

Posted on 16 January, 2015 by Cliff Goodwin

American private equity firm, KSL Capital Partners, has reportedly set a 30-day deadline for offers on its Malmaison and Hotel du Vin portfolio — less than two years after it paid £200m for the chain of 29 hotels.

Acquiring the business in 2013 from the administrator of the collapsed MWB Group, which went into administration in November, 2012, KSL then it planned to invest significantly in all the hotels and expand both brands across the UK and internationally.

Since then it has opened a new Malmaison hotel in Dundee, in September, 2013, and early last year converted an existing property in St. Andrews to a Hotel du Vin. It has also expanded its portfolio with the acquisitions of Wimbledon’s Cannizaro House and the historic Great Scotland Yard in central London.

At the time the sale KSL partner, Richard Weissmann, said: “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.”

KSL has now started contacting prospective buyers it thinks might be interested in a worldwide acquisition of this scale. The hospitality specialist is working with advisers at investment bank UBS to find a buyer and says it wants offers lodged by the first week of February.

To revive two of the UK’s biggest boutique hotel chains KSL installed Gary Davis, an experienced industry executive, as their new chief executive. Sales and profits have since grown substantially. Davis has also taken on the additional role of chief executive of the Village Hotels chain, which KSL acquired at the end of last year from the De Vere Group for £485m.

De Vere Group chairman, Andrew Coppel, described the figure achieved by the Village sale as “a reflection of the excellent quality of the brand, which has a strong and viable future and the potential to double its portfolio”. Many analysts now believe, however, that KSL intends to invest in the Village brand, while selling off Malmaison and Hotel Du Vin.

Both the chains, which employ more than 3,000 people between them, were founded in 1994 and are particularly adept at converting well-known local landmarks such as a former castle prison, hospital and sugar refinery, into boutique hotels.

The disposal by KSL after just 22 months is also being seen as the latest example of private equity buying cheap, turning a distressed business around, and then looking for a sharp exit. “Although Malmaison may have risen in perceived value with the markets,” claimed one hospitality expert, “many believe Hotel Du Vin is the tastier target and remains a well-regarded brand.”




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants