Frasers Hospitality UK, a wholly-owned subsidiary of Frasers Centrepoint, has successfully completed the acquisition of Malmaison Hotel du Vin group.
Frasers paid £363 million to purchase the chain of boutique lifestyle hotels from an affiliate of KSL Capital Partners.
MHDV owns two upscale boutique lifestyle brands – Malmaison and Hotel du Vin – comprising 29 boutique lifestyle hotels and 2,082 keys across 25 cities 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 Lim Ee Seng, group chief executive of Frasers Centrepoint.
Both Malmaison and Hotel du Vin enjoy healthy average occupancies of over 80 per cent for the last three years and achieve superior revenue per available room 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,” added Frasers Hospitality chief executive, 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.
Malmaison is a daring lifestyle brand and so much more than just 13 hotels but places sought after to dine, drink, meet as well as sleep.
Frasers Hospitality is already considered the World’s Leading Serviced Apartment Brand by the World Travel Awards.
The inclusion of Malmaison and Hotel du Vin brings its portfolio to 129 properties, across 77 cities and over 21,100 keys.
Apart from accelerating Frasers Hospitality’s growth in the portfolio, Frasers will be enhancing its platform and management expertise in Europe.