FRASERS Hospitality has expanded its global footprint with its largest acquisition to date.
It is paying £363.4 million ($760 million) for the Malmaison Hotel du Vin (MHDV) group of boutique lifestyle hotels.
MHDV owns two upscale boutique lifestyle brands - Malmaison and Hotel du Vin - comprising 29 boutique hotels and 2,082 keys across 25 cities in the United Kingdom.
This doubles Frasers Hospitality's offerings in Europe to about 4,000 keys.
Both Malmaison and Hotel du Vin enjoy healthy average occupancies of over 80 per cent over the last three years, parent company Frasers Centrepoint said in an announcement on Wednesday. It also has superior Revenue Per Available Room against its peers.
Mr Choe Peng Sum, chief executive officer of Frasers Hospitality, said the purchase of the two brands "perfectly complements" the company's brand portfolio.
It remains committed to growing its other five brands: serviced residences Fraser Suites, Fraser Place and Fraser Residence; Modena by Fraser in China; and Capri by Fraser, a serviced apartment- hotel hybrid.
The Capri by Fraser brand is growing particularly quickly, with close to 12 properties since it was started in Singapore two years ago, Mr Choe noted.
"(Prior to the acquisition), what we did not have was the boutique lifestyle segment. We didn't want to go into mainstream hotels but were looking at niche, boutique hotels, the fastest growing sector. This is exactly what we were missing in our portfolio."
Frasers Hospitality will grow these two brands - in the UK, Europe, and even bring them to Asia, he added.
The inclusion of Malmaison and Hotel du Vin brings Frasers Hospitality's portfolio to 129 properties across 77 cities, and over 21,100 keys.