The owner of Britain’s best-known spa hotel has called in bankers to help explore strategic options on the eve of its centenary.
Sky News has learnt that Champneys has appointed Cavendish to advise it on potential deal opportunities, including the acquisition of a new site as well as a sale of the business.
The company’s sites 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, was also said to be a regular Champneys guest.
The chain now comprises a handful of sites, including at Forest Mere in Hampshire and the original Henlow spa in Bedfordshire.
Champneys is now understood to be in talks to finalise the addition of a further site by buying an existing spa hotel.
The company was previously owned by the late Dorothy Purdew, who died last year.
It is now run by her son Stephen.
Pic: Champneys
It was unclear on Friday whether Mr Purdew would consider selling a controlling stake in the company or whether any process would be restricted to a minority stake.
Leisure industry sources said that a majority stake would be likely to attract interest from hotel chains, property investors and private equity funds.
Potential bidders are expected to begin being sounded out in the new year.
Reports last year said that the company had implied it was worth £300m, although market sources suggested that a lower valuation was likely given 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 range of personal care products through a number of retailers.
Accounts filed at Companies House for Champneys Henley Limited for the year ended 30 April 2023 show that turnover was flat at about £56.5m, but with a pre-tax loss of just over £5m.
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“The health resort, hotel and spa market remains highly competitive,” the accounts said.
“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 business, along with the ongoing global pandemic which has impacted the hospitality sector.”
A public relations agency which represents Champneys said it had been unable to contact its client, while Cavendish declined to comment.