An American private equity fund has kicked off an £800 million auction of Village Hotels, one of the UK’s biggest mid-market chains.
Advisers to KSL Capital Partners have begun marketing Village by sharing “teaser” documents with interested parties, City sources say. Morgan Stanley, the investment bank, was selected last year by KSL, based in Denver, to explore options for Village is thought to be inviting offers in excess of £800 million.
KSL bought the chain for £485 million from De Vere Group in 2014. It then had 3,100 rooms across 25 sites. Village has grown to 33 hotels with more than 4,000 rooms. Proceeds from the sale to KSL a decade ago were used to repay Lloyds Bank, which acquired De Vere in a deal