Frasers Hospitality UK Holdings Limited, a wholly-owned subsidiary of Frasers Centrepoint Limited (“FCL”), successfully completed the acquisition of Malmaison Hotel du Vin group (“MHDV”) of boutique lifestyle hotels for a consideration of GBP363.4 million (approximately S$760 million) from an affiliate of KSL Capital Partners, LLC.
MHDV owns two upscale boutique lifestyle brands – Malmaison and Hotel du Vin – comprising 29 boutique lifestyle hotels and 2,082 keys across 25 cities1 in the United Kingdom.
“FCL’s strategy remains focused on achieving balanced growth across asset classes and diversifying our earnings profile. 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.” said Mr Lim Ee Seng, Group CEO of FCL.
Both Malmaison and Hotel du Vin enjoy healthy average occupancies of over 80% for the last three years and achieve superior Revenue Per Available Room (“RevPAR”) against their peers.
“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,” says Frasers Hospitality’s CEO, Choe Peng Sum. “With these two best-in-class lifestyle brands, we are on track to reach our goal of operating 30,000 keys by 2019.”
Founded in 1994, MHDV’s management team has developed a unique collection of premier boutique hotels throughout the UK, specialising in the conversion and repositioning of iconic heritage buildings to capture the upmarket segment of leisure and business travellers. Today, affluent travellers seek unique and memorable experiences in their choice of accommodation, often preferring personalised lifestyle experiences over mass-market offerings.
Hotel du Vin has an elegant and eclectic style, with trademark bistros and an emphasis on
outstanding wine that forms the heart of each of its 16 hotels. It is the winner of accolades such as Business Traveller Best Small Hotel Group In The World and a Gold Award winner by Conde Nast for design and ambience and the awards are credited to Hotel du Vin’s unique and stylish concept.
Malmaison is a lifestyle brand and more than just 13 hotels but places sought after to dine, drink, meet as well as sleep. Malmaison has won Best Small Hotel Chain at the Business Travel Awards for 4 consecutive years.
With the two new brands, the group’s platform comprises:
• Gold-standard serviced residences Fraser Suites, Fraser Place and Fraser Residence;
• Modern lifestyle serviced residences through Modena by Fraser;
• Design-led Hotel residences Capri by Fraser; and
• Boutique lifestyle hotels Malmaison and Hotel du Vin.
The inclusion of Malmaison and Hotel du Vin brings Frasers Hospitality’s portfolio to 129 properties, across 77 cities and over 21,100 keys2. Apart from accelerating Frasers Hospitality’s growth in the portfolio, Frasers will be enhancing its platform and management expertise in Europe.
Barclays Bank PLC and Standard Chartered Bank are the joint financial advisers to FCL for this acquisition.
1 Cities including Aberdeen, Belfast, Birmingham, Brighton, Bristol, Cambridge, Cheltenham, Dundee, Edinburgh, Glasgow, Harrogate, Henley-on-Thames, Leeds, Liverpool, London, Manchester, Newcastle, Oxford, Poole, Reading, St Andrews, Tunbridge Wells, Wimbledon and Winchester.
2 Includes 8,019 signed-up apartments and immediate pipeline of 2 MHDV hotels.
