Malmaison and Hotel du Vin sold to US private equity house
UK: Denver-based KSL Capital Partners has acquired Malmaison Group, owner of the Malmaison and Hotel du Vin boutique hotel brands, for an undisclosed sum.
The sale follows Malmaison's parent company , MWB Group Holdings, being placed in administration in November 2012 due to a financial dispute with a subsidiary over an £8 million inter-company loan.
A company statement said: "With 27 hotels, the transaction will
cement Malmaison and Hotel du Vin's position as the UK's leading
boutique brands, with KSL planning to invest significantly in the
existing portfolio and in the growth of both hotel brands. The
investment will support the current development strategy initiated
by CEO Gary Davis. Under the leadership of Mr. Davis and KSL,
Malmaison will continue its brand development plans including an
extensive renovation program and expansion within the UK, European
and international markets."
KSL says it is committed to growing Malmaison and Hotel du Vin, with "a number of investment initiatives underway, including the opening of a new Malmaison hotel in Dundee in September 2013 and the conversion of an existing property in St. Andrews to a Hotel du Vin in early 2014".
Gary Davis said: "We are delighted to welcome KSL as the new owners of the Malmaison and Hotel du Vin brands and are excited to be working with them. They have recognised the significant potential in our business. We look forward to leveraging their considerable expertise, which combined with the talent in our own senior leadership team, will further develop our leading hotel brands. Despite the wider challenging economic climate, we are proud of the strong operational and financial position that the hotels currently enjoy," Mr. Davis added. "Building on these foundations, we look forward to taking the dynamic brands onward into a period of exciting growth over the coming years."
Richard Weissmann, a partner at KSL, said: "At KSL, 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. We are pleased to be working with the company's talented management team."
KSL has a significant portfolio of hospitality assets. In the UK, it owns The Belfry in the West Midlands. In the United States, KSL owns The Grove Park Inn, The Homestead, Montelucia Resort & Spa, Barton Creek Resort & Spa, Rancho Las Palmas Resort & Spa, The James Royal Palm, La Costa Resort and Spa, and ClubCorp, one of the world's largest owners of private golf and business clubs. KSL also owns Squaw Valley and Alpine Meadows, two of the leading ski resorts in North America; and Western Athletic Clubs, the owner and operator of luxury fitness clubs in California.