The four-star Roxburghe hotel in Edinburgh’s Charlotte Square has been sold in the largest single asset hospitality transaction in Edinburgh since 2007.
The Roxburghe, which is owner-operated under an Intercontinental Hotel Group franchise, has been sold by a private UK investor to US-based investment management firm Starwood Capital. It is believed to have traded for more than £40m.
A major refurbishment of the hotel was undertaken in 2013, which marked the introduction of the IHG franchise and saw the hotel rebranded as Crowne Plaza Edinburgh – The Roxburghe.
Charlotte Square is home to the First Minister’s official residence, Bute House, as well as a number of National Trust for Scotland properties.
Starwood Capital’s Global Real Estate portfolio includes more than 2,200 hotels.
Keith McBain, director at JLL, which acted for the vendor, said: “This is a landmark deal for the Edinburgh and Scottish market, underlining its status as a hugely attractive destination for investors. The hotel, which has 199 guest rooms, has seen continual investment to improve the facilities for visitors since it was purchased in the late 1990s, and we expect the new owners to continue that trend.”
George Nicholas, executive vice president, JLL, added: “We see this interest in Scotland as an increasing trend, with money from domestic and overseas sources – particularly North America, China and elsewhere in the Far East. There is real appreciation of the added value, compared with London, and Edinburgh along with a few other Scottish cities are best placed city to benefit from that sentiment.”
Annabel.Dixon@estatesgazette.com
