• Morgans shows boutique appeal

Reports that Morgans Hotel Group, the New York listed boutique hotelier, is being pursued by two separate Middle Eastern sovereign wealth funds demonstrate the increasing appeal of chain of so-called lifestyle hotels.

The news has perhaps encouraged Marylebone Warwick Balfour to try its luck a third time in unloading its Malmaison and Hotel du Vin chains.

Morgans, which was founded by Ian Schrager, has attracted interest from Zabeel, a Dubai-based fund, and Mubadala, a fund from Abu Dhabi, according to the Times newspaper in London which said an enterprise value of $1.4bn had been placed on the company.

Citigroup projects EBITDA of $95m for this year, giving a multiple of 14.7 times if the enterprise valuation in the report proves accurate.

Meanwhile, MWB is seeking more than £650m for Malmaison and Hotel du Vin, this time breaking the chain into its two respective brands, with Malmaison going for slightly more at £350m.

The chains have been growing – this month Christie & Co sold Hotel du Vin a Canterbury hotel and three properties under the brand are opening this year- but even so the valuation looks rich.

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