Private equity giant Blackstone is currently in exclusive talks to acquire Village Hotels, one of Britain’s largest mid-market hotel chains. This news follows an earlier report from Sky News that Blackstone had made an offer for the company.
According to sources, Blackstone has entered into a period of exclusivity to purchase Village Hotels, which is being auctioned by Morgan Stanley. The chain, which has a valuation of approximately £850m, was put up for sale earlier this year.
Other interested parties include Sixth Street, a US-based investment firm, and Aermont, the majority backer of Pinewood Studios. However, it appears that Blackstone has emerged as the front-runner in the bidding process.
Village Hotels, which has over 30 locations across the UK, is currently owned by KSL Capital Partners. The chain offers budget-friendly accommodations with amenities such as pub-style restaurants and gyms. It was originally founded in 1995 as Village Urban Resorts.
This potential deal comes on the heels of recent failed attempts to sell Center Parcs UK and Travelodge. KSL Capital Partners reportedly acquired Village Hotels for £485m in 2014 from De Vere Group. The Denver, Colorado-based buyout firm has also previously owned other UK hotel chains, including Hotel du Vin and Malmaison.
At this time, Blackstone has declined to comment on the negotiations.