Schroders acquires £100m Edinburgh hotel

Schroders Capital has acquired W Edinburgh, a 244-bed luxury hotel, from Nuveen Real Estate for around £100m. W Edinburgh, Marriott International’s first luxury property in the city and the first W Hotel in Scotland, opened November 2023. The hotel comprises three distinct buildings: the Ribbon Building, James Craig Walk and the Quarter House. James Macnamara, global head of value add and alternatives, real estate, Schroders Capital, said: “The addition of the W Edinburgh to our portfolio is hugely exciting, as we continue to identify top-tier hotel assets that can facilitate multiple ways to create value and offer significant long-term growth potential. Edinburgh is an attractive market for Schroders Capital and we look forward to working with the highly experienced and agile team at the hotel to ensure guest experience remains in line with the W brand quality and ethos. We expect this investment to follow many other successful collaborations between Schroders Capital and Marriott International in the luxury hotels space such as the St Regis in Venice and The Westin Palace in Milan.” Ed Webb, director of development management, Nuveen, said: “The completion of the sale of the W Edinburgh marks a considerable milestone for St James Quarter as the first transaction realises over a decade of planning and development to deliver a leading destination in the heart of Edinburgh and the completion of a vision shared by our investors. The hotel itself has become an iconic landmark within the city centre whilst also providing a best-in-class offering worthy of Edinburgh’s status as a global tourist destination and recognised by being awarded Scottish hotel of the year 2025.” Schroders Capital and its clients were advised by CMS and Carey Olsen. Nuveen Real Estate were advised by Savills and Eastdil Secured, Herbert Smith Freehills and CMS, and EY.