Noted U.S.-based hotel investors Blackstone Group, Starwood Capital and KSL Capital Partners are understood to be on a 12-long shortlist to acquire De Vere Group’s Village Urban Resorts chain, according to a report from Conference News in the UK. The highest offer is reportedly around £470 million (US$774 million).
Sources close to the process also report that Queensgate Investments of London is still in the running for the deal and speculation exists that Robert Cook, the former CEO of Village Urban Resorts, who (along with three other executives) was moved out by Group Chief Executive Andrew Coppell in April, is courting private equity groups to secure backing for a management buy in.
The sale of Village will crystalize further losses for Lloyds, who have already written off hundreds of millions of pounds with the sale of De Vere Venues to Starwood Capital (for approximately US$382 million in March) and six of the golf course hotels to Bain Capital, which are likely to be integrated into Q Hotels.