The owner of Britain’s best-known spa hotel has called on bankers to help explore strategic options on the eve of its centenary.
Sky News has learned that Champneys has appointed Cavendish to advise on possible transaction opportunities, including the acquisition of a new site as well as the sale of the business.
The company’s locations are known for their A-list celebrity clientele, including Daniel Craig, Anthony Joshua, Kate Moss, Brad Pitt and Naomi Campbell.
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Diana, Princess of Wales, is also said to be a regular guest at Champneys.
The chain now includes a handful of sites, including at Forest Mere in Hampshire and the original Henlow spa in Bedfordshire.
Champneys is now reportedly in talks to complete the addition of an additional site by purchasing an existing spa hotel.
The business was previously owned by the late Dorothy Purdew, who died last year.
It is now managed by his son Stephen.
Photo: Champneys
It was unclear Friday whether Mr. Purdew would consider selling a majority stake in the company or whether any process would be limited to a minority stake.
Leisure industry sources said a majority stake was likely to attract interest from hotel chains, property investors and private equity funds.
Potential bidders are expected to begin being interviewed in the new year.
Reports last year said the company had suggested it was worth £300m, although market sources suggested a lower valuation was likely due to tough conditions in the hospitality sector.
In addition to its resort spas, Champneys operates several day spas, an education and training business, and sells a line of personal care products through several retailers.
Accounts filed with Companies House for Champneys Henley Limited for the year ended April 30, 2023 show that turnover remained steady at around £56.5 million, but with a pre-tax loss of one just over £5 million.
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“The market for thermal resorts, hotels and spas remains very competitive,” the accounts say.
“During the year, direct competition from hotels with spa facilities, local specialist spa facilities and indirect competition from the leisure industry are the main challenges facing the company, as well as the ongoing global pandemic that has impacted the hospitality sector.”
A PR agency which represents Champneys said it had been unable to contact its client, while Cavendish declined to comment.