Blackstone: Investment manager enters £850m race for Village Hotels
Private investment giant Blackstone has reportedly entered the £850m auction to buy mid-market chain Village Hotels.
Blackstone, which owns assets worth billions across Britain, has tabled an offer to buy the budget accommodation providers.
Sources told Sky News‘ Mark Kleinman on Wednesday that Sixth Street, another US-based investment firm, was also in the race to purchase the business.
It follows reports two weeks ago that the majority backer of Pinewood Studios Aermont, was among 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.
It comes as a £4bn plot to sell Center Parcs was put on hold, while rumours of a Travel Lodge have also been floated.
Village Hotels was first founded in 1995 and offers restaurants and leisure facilities on site.
City PM has contacted KSL Capital Partners, Blackstone and Sixth Street for comment.
If Blackstone is successful it will mark another venture in the UK hospitality market.
The company owned Butlins for around one year before selling 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.”