KSL sells UK's Malmaison and Hotel du Vin chains to Singapore's Frasers

KSL Capital Partners has completed the sale of the Malmaison and Hotel du Vin hospitality chains to Singapore's Frasers Hospitality. The deal is reported to be worth £363 million or around US$576 million. Hotel du Vin and Malmaison operate 29 boutique hotels across the UK. The hotels had been owned by KSL Capital, the Denver-based private equity group, since 2013, when it acquired the chains for close to US$317 million.

“This acquisition is important as it doubles our offerings in Europe to about 4,000 rooms,” said Lim Ee Seng, CEO of Frasers Centrepoint, Fraser Hospitality’s parent company.

“Our 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,” Seng continued.

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“We are grateful to have been a part of Malmaison and Hotel du Vin,” said Coley Brenan, a principal of KSL. “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.”

The acquisition by Frasers expands its global footprint to 129 properties across 77 cities.

The Business Times called Frasers Centrepoint a stock to watch in light of the deal consummation. The purchase reportedly caused earnings per share of the group to increase from 20.4 cents to 20.9 cents for the financial year ended Sept 30 last year on a pro-forma basis.

Frasers Hospitality has been busy of late picking up hotel assets. Last month, it acquired the the Sofitel Wentworth in Sydney for around US$176 million. This marks Frasers Hospitality Trust's first acquisition since its initial public offering last year, and its third hospitality asset in Sydney. The group’s other Sydney properties include Fraser Suites Sydney and Novotel Rockford Darling Harbour.

Once the deal closed, Australian assets comprised 22.4 percent by valuation of Frasers property portfolio. So the deal for UK-based chains in Hotel du Vin and Malmaison now diversifies the group's holdings.

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