Village Hotels has revealed new plans for expansion of its portfolio, following acquisition of the business by new owner Blackstone.
The group, which operates 33 hotels across the UK, is readying to start a number of extension projects, expanding the number of rooms at existing hotels. Three sites, in Ashton, Manchester and Solihull, will see construction start in the coming weeks, as each of the hotels already has planning consent for the addition of 48 more bedrooms.
A new growth plan
The group has said it will progress similar expansion plans across several other sites within the portfolio, where there is clear demand for additional overnight stays. It expects to execute three more site extensions in 2025. The new impetus for growth comes after the business was sold for around GBP850m in June 2024, having been in the ownership of investors KSL for the previous decade. Under KSL’s ownership, around 1,200 rooms were added to the portfolio, as new hotels were opened, while fitness memberships grew by 45,000.
Village operates a business model that is unique in the UK. Its hotels also feature a large health and fitness club, with thousands of local residents signed up as members, who use the facilities alongside hotel guests. On average, a Village fitness club carries around 4,000 local memberships, providing a significant additional income stream for the group. Typically, hotels will feature a pool, sauna and run an extensive programme of fitness classes while also having well equipped gymnasiums. This combined footfall then boosts sales at each hotel’s Starbucks branded coffee shops, and welcoming bar and restaurant offering.
Village Hotel Club CEO Gary Davis commented: “With Blackstone’s partnership we see significant opportunities to grow our business and brand, including investing in our existing hotels and leisure clubs to add more value to guests. I am delighted that Robin has joined the team and will lead us in growing our footprint with acquisitions and new development opportunities across the UK.”
Searching for acquisitions
In addition, Village has signalled renewed plans to expand its portfolio, potentially by acquiring existing hotel properties. The group has created a new position, director of m&A, and appointed Robin Leahy to the role. Leahy previously led the acquisitions and development strategy at Atlas Hotels, part of London & Regional Properties.
The group’s existing 33 hotels will feature fresh investment, upgrading and refurbishing the guest offering. Gym and fitness centres will be expanded, with new facilities including Reformer Pilates, padel courts, recovery lounges, outdoor fitness and new changing rooms. Starbucks branded coffee shops, a key feature within Village hotels, will also be expanded and upgraded.
