Blackstone completes acquisition of Village Hotels from KSL Capital Partners

Blackstone Real Estate, through funds managed by Blackstone, has successfully completed the acquisition of Village Hotels, a prominent UK-based hotel owner, operator, and developer, from affiliates of KSL Capital Partners, a leading investor in the travel and leisure sectors. This acquisition sees Blackstone taking over 33 strategically placed assets across large regional cities and suburban areas in the UK, representing a total of 4,400 hotel keys.

Village Hotels is renowned for its “all under one roof” leisure concept, which includes traditional full-service hotel stays along with fitness clubs, food and beverage outlets, and co-working spaces. This diverse range of amenities has allowed Village Hotels to cultivate a broad and loyal customer base, catering to domestic business travelers, tourists, large groups, and local visitors alike.

James Seppala, Head of Real Estate Europe at Blackstone, expressed enthusiasm about the acquisition: “We are delighted to add Village Hotels, a standout hospitality brand with a unique business model, to our real estate portfolio. We see great potential in lodging and leisure as a sector, especially where we can support strongly positioned businesses that deliver exceptional experiences to their customers. We look forward to partnering with Village Hotels’ seasoned management team and support them as it embarks on its next stage of growth.”

Gary Davis, CEO of Village Hotels, also commented on the transition, noting the brand’s evolution and future under new ownership: “With KSL’s support, we have developed a differentiated brand, offering lodging, food, meeting space, and health and wellness, ‘everything under one roof’. With Blackstone, we see great opportunities to expand the number of hotels in the UK and further enhance our existing facilities. An exciting time for us all.”

Under KSL’s guidance, Village Hotels expanded its portfolio significantly, adding more than 1,200 rooms and 45,000 fitness members. Jens Blomdahl, Principal at KSL Capital Partners, reflected on the partnership: “We are pleased to have partnered with the Village Hotels team to build out a comprehensive hospitality offering and expand their high-quality portfolio. We look forward to following Village Hotels’ continued success in this new chapter as part of the Blackstone portfolio.”

Blackstone has demonstrated a long-term commitment to the UK leisure sector, underscored by its 2021 acquisition of Bourne Leisure, which includes Haven Holiday Parks and Warner Hotels. Since then, Blackstone has invested over £550 million in upgrading and expanding these brands, positioning Bourne Leisure as one of Britain’s leading providers of holiday experiences and holiday homes.

In this transaction, Lazard acted as Blackstone’s lead financial advisor, with additional support from Santander. Legal advice was provided by Simpson Thacher & Bartlett and DLA Piper. Morgan Stanley & Co. International plc served as KSL’s financial advisor, with Dentons providing legal counsel.