Twenty14 Holdings, the hospitality investment arm of Middle Eastern conglomerate Lulu Group International, has completed the acquisition of the Caledonian hotel for £85 mln (€95 mln).
JLL and HVS Hodges Ward Elliott jointly advised on the sale in what is said to be the largest hotel sale in Scotland since 2015 when the Gleneagles hotel was sold for a price of £150 mln.
The five-star hotel, which is run by Hilton under its high-end Waldorf Astoria brand, also represents the largest single asset trade in the regional UK market in the last 12 months, according to advisor JLL, which arranged the debt financing for the purchaser.
Commenting on the sale, Will Duffey, co-head European Transactions, JLL's Hotels & Hospitality Group, said: 'The hotel has long been seen as a jewel in the crown of the UK hotel market. Our client's recent refurbishment programme repositioned the hotel to its former glory when it reopened as the first Waldorf Astoria in the UK in 2012. We are delighted to have advised on this irreplaceable trophy hotel overlooking Edinburgh Castle to an investor who will preserve and protect this most important of assets for generations to come.'
The sale of The Caledonian follows the recent sales during 2017 of The Scotsman and The Bonham in Edinburgh.
Twenty14 Holdings said that it intends to invest a further £20 mln to expand the hotel by 50 guest rooms, over a period of three years.
First opened in 1903 as part of the old Princes Street Railway Station, The Caledonian currently has 241 rooms and is home to two restaurants operated by Michelin-starred brothers Chris and Jeff Galvin.
