Aermont, owner of Pinewood Studios, in the running to acquire Village Hotels for £850m

A major player in the British film industry has set its sights on the hospitality sector as Aermont, the private equity firm behind Pinewood Studios, has made a bid for Village Hotels, one of the UK’s largest mid-market hotel chains. According to sources, Aermont, known for its real estate investments, submitted an offer last week for the hotel group, which is currently owned by KSL Capital Partners.

City insiders revealed that KSL is seeking offers in the range of £850 million or more for Village Hotels, prompting interest from other potential buyers. Among them is Blackstone, another prominent private equity firm, although they have yet to make a formal offer. The auction process is being managed by bankers at Morgan Stanley.

Village Hotels, with over 30 properties across the UK, offers budget-friendly accommodations with amenities such as pub-style restaurants and gyms. KSL acquired the chain in 2014 for £485 million from De Vere Group.

This move by Aermont marks a strategic shift in their investment portfolio, which has previously included ownership of other UK hotel chains like Hotel du Vin and Malmaison. Both Aermont and Blackstone have declined to comment on the potential acquisition.

The hotel industry in the UK has seen significant interest from investors in recent years, with notable deals and acquisitions reshaping the landscape. The outcome of the bidding process for Village Hotels is eagerly awaited by industry observers as it could have far-reaching implications for the sector.