The refinancing, on which Deutsche Bank advised MWB, will give RBS a 17.5% stake in the Malmaison Group. MWB executives say this implied an equity value of euro 245.8 million ($300.6 million) for the business and represents a euro 101.2-million ($123.8-million) surplus over book value.
Robert Cook, Malmaison's chief executive, reports that MWB was a step closer to deciding the future of its boutique hotels. "Our preferred options are an IPO or trade sale," he says. "A year down the line we'll be in a position to make a decision."
MWB, which also controls the Liberty department store in London, has eight Malmaison hotels and seven Hotel du Vin properties. The new funding will allow it to add at least another nine hotels over the next three to four years. MWB executives say that the strong performance seen by both brands in the second half of last year had continued this year and the business was "fast becoming a main driver within the overall MWB group."
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