M&G Real Estate has acquired the 150-year ground lease of the Marriott Courtyard hotel at Baxter’s Place in Edinburgh.
The 240-bedroom Courtyard Edinburgh was developed by Chris Stewart Group and opened in late 2016.
It is the third Courtyard-branded Marriott hotel in the UK and was developed across three original category A listed Georgian town houses, with a modern extension to the rear.
Facilities include meeting rooms, a fitness centre and an all-day brasserie, as well as free high-speed WiFi. It enjoys a city centre location next to the Playhouse theatre and is just minutes from Princes Street, George Street and Waverley Station.
M&G Real Estate has more than £1bn invested in Scottish commercial real estate across the office, retail, student accommodation and hotel sectors.
Shailendra Shah, investment manager at M&G Real Estate, said: “With over four million visitors to Edinburgh each year, the city is one of the UK and Europe’s leading hotel markets, having consistently achieved one of the highest revenues per available room in the UK – surpassed only by London in 2015.
“This investment helps to meet the demand from institutional investors for long-term income with security that increases in line with inflation.”
Chris Stewart, chief executive officer of Chris Stewart Group, said: “We are delighted to have agreed terms with M&G Real Estate for the ground lease of the Courtyard Edinburgh hotel and we look forward to working with them again in the future.”
Savills advised M&G Real Estate and Chris Stewart Group was advised by Knight Frank.
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