Blackstone enters £850m auction for Village Hotels | Business News

Blackstone, the renowned private equity investor in real estate, has made a bold move by entering the £850m auction of Village Hotels, a popular mid-market hotel chain owned by KSL Capital Partners. Sky News has exclusively learned that Blackstone, known for its extensive property assets in Britain, has submitted an offer to acquire Village Hotels.

City sources have revealed that Sixth Street, another prominent US-based investment firm, is also in the running for the deal. This development comes after earlier reports from Sky News disclosed that Aermont, the majority backer of Pinewood Studios, was among the potential buyers eyeing Village Hotels.

With over 30 sites across the UK, Village Hotels is seeking offers in the region of £850m, with Morgan Stanley overseeing the auction process. This news follows recent setbacks in the sale attempts of Center Parcs UK and Travelodge.

Established in 1995 as Village Urban Resorts, the chain offers budget-friendly accommodations from Aberdeen to Bournemouth, featuring pub-style restaurants and gyms. KSL Capital Partners acquired Village Hotels for £485m in 2014 from De Vere Group, expanding its portfolio of UK hotel chains, which includes Hotel du Vin and Malmaison.

Both Blackstone and Sixth Street have chosen not to comment on their involvement in the auction, keeping the outcome of this high-stakes bidding war shrouded in mystery. Stay tuned for more updates on this exciting development in the hospitality industry.