Village Hotels owner recruits banker with auction process in mind
The owner of a Warrington-based hotels group is considering a sale process.
US-based private equity group KSL Capital Partners acquired Village Hotels in 2014, for a reported £485m from De Vere Group.
The business was founded in 1995 as Village Urban Resorts, and is now one of the UK’s biggest mid-market hotel chains, featuring pub-style restaurants and gyms.
Now, KSL is reported to have recruited banker Morgan Stanley on an auction process for Village Hotels, according to Sky News.
Talks with prospective buyers are said to have already begun.
Village Hotels, based in Centre Park, Warrington, comprises 33 sites, from Aberdeen to Bournemouth.
At the time of KSL’s acquisition, the Village portfolio featured 25 locations, with three further properties scheduled to open.
Before the coronavirus pandemic devastated the hospitality sector, Village Hotels had announced plans to invest £480m to expand the number of properties to 50 by 2026, creating 2,400 jobs.
Its most recent figures filed at Companies House for 2022 showed a jump in turnover from £139.9m to £227.6m, although its pre-tax profits were cut from £40.9m to £17.8m.
Denver-based KSL has also owned other UK hotel chains including Hotel du Vin and Malmaison.
KSL specialises in travel and leisure enterprises in five primary sectors: Hospitality, recreation, clubs, real estate and travel services.