Patron Capital & JV Partner Halcyon Acquire 30% of Von Essen Group Portfolio

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. December 13, 2011

December 12, 2011 - Patron Capital, the pan-European private equity group, announced that it has acquired, together with its new joint venture partner, Halcyon Hotels and Resorts, over 30% of the Von Essen Group portfolio from its administrators; the acquired assets formed a sub-brand within Von Essen known as the Luxury Family Hotels collection.

Four of the assets were owned until 2005 by Nigel Chapman, Halcyon's Chief Executive, who together with Patron Capital is committed to returning them to their former glory and restoring the Luxury Family Hotels brand.

The seven hotels being acquired have a total of 211 keys, with a restaurant and spa/leisure facilities within each asset. The portfolio, which is located predominantly in the south of England, comprises:

• Woolley Grange at Woolley Green, Wiltshire (26 bedrooms)
• Moonfleet Manor at Fleet, Dorset (36 bedrooms)
• Fowey Hall at Fowey, Cornwall (36 bedrooms)
• The Elms at Abberley, Worcester (23 bedrooms)
• New Park Manor at New Forest, Hampshire (24 bedrooms)
• The Ickworth at Horringer, Suffolk (39 bedrooms)
• ThornburyCastle, 10 miles north of Bristol(27 bedrooms)

The total investment for the portfolio is £38.29 million; 95% of the equity will be provided by Patron Capital. The portfolio will be managed by the Halcyon Hotels and Resorts' team, led by Nigel Chapman; the hotels will be operated under the Luxury Family Hotels brand, with the exception of Thornbury Castle which will undergo a programme to widen its appeal to families of all ages. Halcyon Hotels and Resorts specialises in luxury family hotels and resorts. Polurrian Bay Hotel (41 bedrooms) at Mullion in Cornwall, which was acquired by Halycon Hotels and Resorts earlier this year, will also trade under the Luxury Family Hotels brand.

Commenting on the transaction, Josh Wyatt, Director of Hospitality and Leisure at Patron Capital, said: “We are delighted to add these assets to our growing portfolio which now comprises 8,700 keys across multiple countries and brands. This acquisition represents an excellent opportunity to support an iconic brand and series of properties within the family-orientated hospitality sector. With Halcyon Hotels and Resorts' proven track record and a significant investment programme, we expect to re-establish the Luxury Family Hotel brand and reputation.

“Patron Capital's Hospitality and Leisure team has been very active with the recent acquisition of 26 hotels from the administrators of Jarvis, now run under Jupiter Hotels, and the acquisition of two hotels at Westfield Stratford City, as well as the rollout of our Generator Hostels brand across Europe, which is currently underway.”

Nigel Chapman, CEO of Halcyon Hotels and Resorts plc, commented: “I am confident that our in-depth knowledge of the properties, coupled with strategic focus and active management will enable us to revitalise these properties and bring them back to their former glory. We will be creating a new generation of Luxury Family Hotels appealing to families who don't want to compromise on quality just because they are travelling with children. Our focus will be to provide families with stylish yet comfortable accommodation, great food, pampering spas and OFSTED registered children's clubs.

“The team and I are extremely excited about the period ahead and also about the opportunity to create new employment at a number of locations where we will be making strategic appointments. However, this is just beginning; we have powerful partners with big ambitions alongside us… it is very much a case of watch this space!”