Fraser Hospitality buys Malmaison Hotel du Vin Group

Fraser Hospitality is the new owner of Malmalmaison Hotel du Vin Group. For the second time in two years the hotel chain has been sold. Venture capital firm KSL Capital Partners, which only acquired the business two years ago, put the group up for sale at the end of last year, and has now sold the hotel group to Frasers Hospitality UK Holdings. The company, a wholly-owned subsidiary of Frasers Centrepoint Limited (“FCL”), revealed it had “successfully completed the acquisition of Malmaison Hotel du Vin group (“MHDV”) of boutique lifestyle hotels for a consideration of £ 363.4m from an affiliate of KSL Capital Partners, LLC,” 
on 17th June.

The deal includes 29 boutique lifestyle hotels and 2,082 keys across 25 cities in the UK including hotels in Glasgow, Edinburgh and Aberdeen. Both Malmaison and Hotel du Vin, with 2,082 rooms between them, achieved average occupancies of more than 80% for the last three years. Mr Lim Ee Seng, Group CEO of FCL said, “This acquisition is important as it doubles our offerings in Europe to about 4,000 keys and it propels Frasers Hospitality to be one of the leading hospitality players in this market.”

Frasers Hospitality’s CEO, Choe Peng Sum commented, “MHDV provides a tried and proven DNA in the boutique lifestyle segment for us. The purchase of Malmaison and Hotel du Vin perfectly complements our brand portfolio and gives Frasers Hospitality a platform to expand into the fastest growing hospitality sector. We look forward to building on this success with future development in the UK, Europe and Asia.”

The inclusion of Malmaison and Hotel du Vin brings Frasers Hospitality’s portfolio to 129 properties, across 77 cities and over 21,100 keys.

Coley Brenan, a principal of KSL, who bought the hotels from administrators for £200m in March 2013 said, “We are grateful to have been a part of Malmaison and Hotel du Vin,” said “Each property is physically unique, but each share the common traits of exceptional service and wonderful food and beverage offerings. Thanks to the tireless efforts of the employees of Malmaison and Hotel du Vin, we have no doubt they will continue to be two of the preeminent hotel brands in the UK.”

Malmaison was originally founded by Ken McCulloch in Glasgow.