German open-ended fund manager Union Investment has splashed out £38.3m on its first Scottish hotel acquisition.
It has bought a 127-bedroom Premier Inn and 121-bedroom Hub by Premier Inn from South African developer MAS Real Estate.
The hotels are located on East Market Street near the Royal Mile and form part of the wider New Waverley redevelopment, which will be largely completed by 2021.
Andreas Löcher, head of investment management hospitality at Union, said: “We have been investing successfully for several years in the high-growth budget and midscale hotel segment across Europe. The Premier Inn and Hub by Premier Inn brands provide further diversification in our portfolio. We are delighted to be adding two Premier Inn hotels to our holdings, particularly as both formats have already proven effective at the location.”
Cushman & Wakefield advised Union.
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