Marylebone Warwick Balfour (MWB) has announced a £66.4m deal to buy boutique hotel chain, Hotel du Vin (HDV).

The HDV chain – which currently consists of six lifestyle hotels of between 30 and 60 bedrooms each – joins MWBs existing hotel group, Malmaison, which operates properties with between 60 and 120 bedrooms.

“This is a fantastic marriage of the two most exciting hotel brands in the UK,” said chief executive of MWB, Richard Balfour-Lynn.

“There are natural synergies between the two businesses as they are both strong design-led brands that place huge emphasis on superior hospitality within funky and unusual buildings in next generation locations that makes each hotel visit an exciting and enjoyable experience.”

He added that the acquisition meant the combined businesses would be able to expand more quickly, but that Malmaison and Hotel du Vin would be retained as distinct and separate brands.

Hotel du Vin – which will open a new 42 bedroom property in Henley-on-Thames next March – will continue to expand in cathedral and university towns, while Malmaison – due to open a 64-bedroom property in Belfast this December and a 95-bedroom hotel in Oxford in autumn 2005 – will focus on expansion in larger cities.

Both brands place considerable emphasis on bars and restaurants, with food and beverage sales providing between 40 and 60 per cent of each hotel’s total revenue.

Following the acquisition, Hotel du Vin will be managed by the Malmaison team – lead by Robert B Cook – while HDV’s team, including founders, Robin Hutson and Gerard Bassett as well as Peter Chittick, will step down. Charles Morgan will remain operations director.

MWB is financing the acquisition through a new £167.5m banking facility through Bank of Scotland Corporate and secured on the enlarged Malmaison and HDV business.