Blackstone in ‘exclusive’ talks to buy Village Hotels
US private equity giant Blackstone is reportedly in exclusive talks to buy mid-market chain Village Hotels for circa £850m.
According to a report in Sky News, Blackstone has entered a “period of exclusivity” to buy the chain.
Last week, it was also reported by the outlet that Sixth Street, another US-based investment firm, was also in the race to purchase the business.
The majority backer of Pinewood Studios, Aermont, was also said to be among the suitors to buy the company from KSL Capital Partners.
Village Hotels, which has 30 sites across the UK, was put up for auction in February.
The news of the sale followed reports in February that the owner of Center Parcs had abandoned plans to sell the holiday resort group for more than £4bn.
The current owner of Center Parcs, the Canadian investment giant Brookfield, purchased the holiday park operator from Blackstone’s private equity and real estate businesses in 2015.
Village Hotels was first founded in 1995 and offers restaurants and leisure facilities on-site.
Blackstone has also owned Butlins, although it only owned the company for around a year before it sold it back to a newly formed company backed by its founding Harris family.
At the time, Lionel Assant, European head of private equity, Blackstone, said: “Staying true to our high-conviction investment approach, we believe we are well positioned to drive the continued success of both the Haven and Warner businesses.
“Proceeds from the Butlin’s sale will enable us to continue delivering our ambitious investment programmes across both brands, supporting upgrades to the existing estates and adding new sites to the portfolio, to the benefit of millions of customers.”
Morning Wire has contacted Blackstone for comment.