US investor eyes Hotel du Vin and Malmaison takeover bid

The US investor behind the Loungers bar group is reportedly eyeing a takeover of the Hotel du Vin and Malmaison hotel chains.

Fortress Investment Group is among those considering offers for the two brands, which sit under the same ownership structure, according to Sky News.

Commercial property agent Cushman & Wakefield (C&W) is handling the auction of the hotel group.

There are currently 18 Malmaison hotels and 19 Hotel du Vin properties across the UK.

Hotel du Vin was founded by hotelier Robin Hutson in 1994 and has changed hands several times over the years. It was sold to Marylebone Warwick Balfour, then owner of Malmaison, for £66m in 2004.

The pair were acquired by private equity firm KSL in 2013 for a rumoured £200m before being snapped up by their current owner, Singapore-owned Frasers Hospitality Group, for £363m in 2015.

The group has struggled to remain profitable the last few years, with pre-tax losses at Frasers Hospitality UK Holdings widening from £8.8m in 2023 to £9.8m in 2024. This was despite revenue rising from £164m to £170m over the same period.

New York-based Fortress has been on an acquisition spree in the UK in recent years, with deals including the £95m takeover of Majestic Wine in 2019, a rumoured £1b acquisition of Punch Pubs in 2021, and the £354m buyout of the Loungers bar chain this year.

Fortress declined to comment.