Redefine International, the income-focused UK REIT, has bought the Doubletree by Hilton Hotel in Edinburgh city centre for £25.3m – a 6.9% yield.
The hotel provides 138 recently refurbished bedrooms, and includes the separate heritable title of The Chanter public house, located on the ground and basement floors of the property.
Redefine Hotel Management, a wholly owned subsidiary of Redefine BDL Hotel Group in which Redefine International has a 25.28% stake, will take on the lease on the property.
The acquisition will initially be funded by existing cash resources held by Redefine International. It is anticipated that the hotel will be housed in its 71% held subsidiary Redefine Hotel Holdings Ltd in due course, which is financed by Aareal Bank.
Redefine chief executive Mike Watters said: “The transaction was structured on a conditional basis subject to a no vote in the Scottish referendum. Now that the uncertainty surrounding this has been removed we are very pleased to have secured this opportunistic investment in the city of Edinburgh which complements our existing hotel portfolio and plays well to the management skills of Redefine BDL.”
CBRE Hotels acted for the vendor, Royal Bank of Scotland.
