Another potential suitor for Hotel du Vin, Malmaison

LONDON – British hotelier and financier Guy Hands’ Terra Firma Capital Partners is reportedly in talks to acquire boutique brands Hotel du Vin and Malmaison from Singapore-based Frasers Hospitality Group, which reportedly paid £363 million to acquire the group in 2015.

The collection of 37 hotels with 27 in U.K. cities and split evenly between the two brands has struggled to remain profitable the last few years, with pre-tax losses at Frasers Hospitality UK Holdings widening from £8.8 million in 2023 to £9.8 million in 2024. This was despite revenue rising from £164 million to £170 million over the same period.

Frasers announced an auction of the hotel group earlier this year, which is being handled by commercial property agent Cushman & Wakefield.

Hands’ son Richard is now running Terra Firma and there is no clarity on the status of potential negotiations.

Guy Hands’ wife, Julia, is chair of Hand Picked Hotels, a collection of former stately homes which trades across the U.K. Its sites were acquired from Sir Richard Branson’s Virgin Group in 2001.

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 £66 million in 2004. The group was then acquired by private equity firm KSL Capital Partners in 2013 for a rumored £200 million before being acquired Frasers in 2015.

Malmaison was founded by hotelier Ken McCulloch, who passed away last year. The chain is named after the Chateau de Malmaison on the outskirts of Paris, which inspired the design and style found within its hotels.