The future of boutique hotel brands Malmaison and Hotel du Vin has been secured with a takeover by US private equity firm KSL Partners for an estimated £180 million.
Colorado-based KSL acquired golf hotel The Belfry last year for around £65 million and pledged to continue to renovate and expand the 27-strong Malmaison and Hotel du Vin chain.
This includes the opening of a Malmaison in Dundee in September and the conversion of an existing property in St Andrews to a Hotel du Vin in early 2014.
The investment will support the existing development strategy initiated by chief executive Gary Davis including expansion within the UK, Europe and other international markets.
Davis, who previously led the expansion of the De Vere Group’s Village Hotel portfolio and the global expansion programmes at Hard Rock Café and Planet Hollywood, was appointed chief executive of Malmaison in January 2012.
He 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.”
He added: “Despite the wider challenging economic climate, we are proud of the strong operational and financial position that the hotels currently enjoy.
“Building on these foundations, we look forward to taking the dynamic brands onward into a period of exciting growth over the coming years.”
KSL partner Richard Weissmann said: “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.”