Benson Elliot, the UK-based private equity real estate fund manager, has sold the Novotel Edinburgh Park, which it held in a joint venture with Algonquin.
Benson Elliot, the UK-based private equity real estate fund manager, has sold the Novotel Edinburgh Park, which it held in a joint venture with Algonquin.
The hotel, which was purchased by the JV out of administration in late 2010, is being acquired by an unnamed Middle Eastern investor.
Financial details were not disclosed, but Benson Elliot said it will realise a 2.5x multiple with the sale.
Novotel Edinburgh Park opened in mid-2008 and was purpose-built to meet the standards of the four-star Novotel brand. The hotel comprises 170 rooms, a restaurant, meeting rooms and a leisure facility. The hotel is set within the Edinburgh Park business park, close to the city's airport, which provides office accommodation to over 9,000 employees.
Since acquiring the asset in the summer of 2010, Benson Elliot and Algonquin have implemented a series of management strategies and asset management initiatives, including a capital expenditure programme to improve the bar and restaurant provision.
'We purchased this asset at what we believed to be the bottom of the operational cycle, following the global recession and market decline. Since then, our asset management initiatives, and external factors such as the arrival of the Edinburgh Trams, have combined to deliver an exceptional improvement in the hotel’s performance. This was a timely moment to realise the value created for our investors, and to pass the asset on to a credible buyer with a strong investment track record,' said Marc-Olivier Assouline, principal and head of hotels at Benson Elliot.
CBRE was the exclusive agent on the transaction.
