Boutique hotel groups Malmaison and Hotel du Vin are to undergo a £100m expansion to create a total of 25 hotels by 2007.

The expansion will be financed by a combination of debt and equity to develop five new Hotel du Vin sites and five new Malmaison properties in the UK.

Each new site will average between 70 and 150 bedrooms, dependent upon location and will target areas including Oxford, Durham, Exeter, Reading and London’s West End.

There is also a substantial refurbishment programme currently taking place across existing hotels within the Malmaison group.

The expansion plans were announced as the owner of the two chains – Marylebone Warwick Balfour (MWB) – reported the latest results for Malmaison Hotels over the six months to the end of December.

Occupancy levels over the period rose 5 per cent to 80 per cent while average room rate increased to nearly £100 a night.

There was also a 15 per cent increase in the value of the group’s assets to £172m alongside a positive group EBITDA of £6.4m for the half year period, compared to £3.8m for the same period last year. Details: www.malmaison.com