Adults-only hotel chain Warner Leisure Hotels has added two United Kingdom hotels to its portfolio, including its first hotel in Scotland.
As part of the deal, Warner Leisure Hotels acquired the 214-room Delta Hotels by Marriott Forest of Arden Country Club, which is located just east of Birmingham, the United Kingdom’s second-largest city. The property was built in 1960 and sits on 10,000 acres of land, including its golf course. The Birmingham hotel will be rebranded under the Warner umbrella.
In Scotland, Warner Leisure Hotels acquired the 215-room Dalmahoy Hotel & Country Club in Kirknewton, which is just west of Edinburgh. According to CoStar data, the property was built in 1724 and opened as a hotel in 2009 following a renovation. The Dalmahoy Hotel & Country Club sits on 1,000 acres with two golf courses.
The acquisition price was not specified. When Blackstone was reached for comment, the firm forwarded the Warner Leisure news release.
A statement from Warner Leisure hinted at the deal price, stating that this two-hotel deal underlines Blackstone’s “commitment to Warner Leisure Hotels’ growth story … reflected in its investment of almost £120 million ($146 million) to renovate, refurbish and expand the portfolio.”
In a joint statement, Blackstone’s head of European private equity Lionel Assant and head of European real estate James Seppala said: “These acquisitions reflect our continued confidence not only in the U.K. domestic tourism sector but in the Warner Leisure Hotels brand. Acquiring these two landmark hotels marks the next step in the company’s growth story as we continue to look for opportunities to add high-quality hotels to the portfolio and to invest significant capital in repositioning them.”
Warner Leisure Hotels is part of Bourne Leisure Holdings, which U.S. private-equity fund Blackstone bought in February 2021. Warner Leisure’s property portfolio consists of stately homes, country clubs and seaside retreats. Since its acquisition of Bourne Leisure, Blackstone has invested more than £450 million in its asset portfolio.
Starwood Capital Group engineered the 2021 deal with a “£1.8 billion term loan as mandated lead arrangers to Blackstone Capital Partners and Blackstone Real Estate Partners.”
With the addition of the Delta Hotels by Marriott Forest of Arden Country Club and the Dalmahoy Hotel & Country Club — as well as the 2024 opening of The Runnymede on Thames Hotel & Spa — Warner Leisure now operates or has in its pipeline 18 hotels with 4,063 rooms.
Warner Leisure acquired the 180-room Runnymede on Thames Hotel & Spa from Ralph Trustees in March 2022. Runnymede is famous for being the site where the Magna Carta document was signed in 1215 by King John.
Three family offices, the Allen, Cook and Harris families, continue to have minority stakes in Warner Leisure.