Blackstone Real Estate, a part of the global investment company Blackstone, has announced the acquisition of Village Hotels from affiliates of KSL Capital Partners, a firm specialising in travel and leisure investments.
While the financial details of the transaction remain undisclosed, an earlier report of Sky News indicated that the hotel chain had been put up for sale with a valuation of approximately £850m.
Village Hotels owns and operates a portfolio of 33 mid-market hotels situated in regional cities and suburban areas throughout the UK.
The brand operates on the "all under one roof" concept, providing a mix of hospitality services, including hotel accommodation, fitness clubs, food and beverage outlets, and co-working spaces.
The acquisition adds 4,400 hotel keys to Blackstone's UK leisure portfolio.
Village Hotels caters to a diverse clientele, ranging from domestic business travellers and tourists to local residents, and large groups.
Blackstone's Europe real estate head James Seppala 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.”
Village Hotels CEO Gary Davis said: “With KSL’s support, we have developed a differentiated brand, offering lodging, food, meeting space and health and wellness, ‘everything under one roof’.
“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.”
The investment follows Blackstone’s 2021 purchase of Bourne Leisure, which includes Haven Holiday Parks and Warner Hotels.
Post-acquisition, Blackstone has invested more than £550m to enhance and expand the offerings of Bourne Leisure's brands.
