According to reports from Sky News, the owner of Hotel du Vin and Malmaison, KSL Capital Partners, a private equity firm based in Denver, Colorado, is preparing to put the business up for sale two years after its former parent collapsed into administration.
Sky News reported investment bank UBS is to conduct a full review of strategic options for the Malmaison Group which is expected to lead to the auction of the two hotel brands.
Hotel du Vin and Malmaison, which between them operate from nearly 30 sites across the UK and employ approximately 3,000 people, were previously owned by MWB Group, which went into administration in November 2012.
The Malmaison Group appointed Gary Davis, an experienced industry executive, as chief executive in 2012, since when sales and profit have grown substantially.
Malmaison Group, has recenlty acquired the historic Cannizaro House in southwest London and is investing £1m into renovating the property as a Hotel du Vin site.
Great Scotland Yard, London, is also in the process of being acquired.
Sky News said it was unclear how large the price tag attached to the group by KSL would be, but reported sources saying Malmaison executives led by Davis would be looking to secure a new backer with sufficient capital to fund future expansion plans.
Speaking at the time of KSL’s £200m takeover in March 2013,
Richard Weissmann, a partner at the firm, said of the two UK hotel brands: "At KSL, we look for unique travel and leisure businesses with strong management teams to help support and grow. Malmaison and Hotel du Vin occupy a strong position in the UK market.
"With an exceedingly loyal following, we believe each brand has tremendous potential for further growth and expansion."
Sky News said Malmaison Group and UBS declined to comment, while KSL could not be reached for comment.