Blackstone snaps up UK hotel operator Village Hotels

FILE PHOTO: Signage is seen at the Blackstone Group headquarters in New York City, U.S., January 18, 2023. REUTERS/Jeenah Moon/File Photo

LONDON (Reuters) - Private equity giant Blackstone has agreed to buy British hotel operator Village Hotels, the company said on Wednesday, part of a wider investor push into the hospitality sector as it outperforms the broader commercial property market.

Blackstone said in a statement that funds managed by the firm had completed an acquisition of the hotel operator, which runs 33 mid-market hotels across regional cities and suburbs in Britain.

"We see great potential in lodging and leisure as a sector," said James Seppala, Head of Real Estate Europe at Blackstone.

The company did not disclose the value of the deal. Sky News has previously reported that the chain was put up for sale with a valuation of around 850 million pounds ($1.1 billion).

Blackstone's previous forays into the UK leisure sector have included the 2021 acquisition of holiday park-owner Bourne Leisure, which also runs hotel chain Warner Hotels.

Village Hotels was previously owned by investor KSL Capital Partners. Lazard and Santander advised Blackstone, while Morgan Stanley advised KSL.

($1 = 0.7895 pounds)

(Reporting by Iain Withers; Editing by Tommy Reggiori Wilkes)