Union Investment has acquired two hotel properties in Edinburgh’s historic city centre for €43 mln from MAS Real Estate, marking its hospitality debut in Scotland.
Since its launch in 2016, the 248-room complex has been operating as two hotel formats, a Premier Inn with 127 rooms and a Hub by Premier Inn with 121 rooms.
'We have been investing successfully for several years in the high-growth budget and midscale hotel segment across Europe,' said Andreas Löcher, head of investment management hospitality at Union Investment Real Estate. 'We are delighted to be adding two Premier Inn hotels to our holdings, particularly as both formats have already proven effective at the location,' he added.
The hotel properties are let on a long-term leases to operator Whitbread, and are being acquired for Union Investment's open-ended real estate fund Unilmmo: Global.
After London, Edinburgh is the most popular travel destination in the UK and is increasingly attracting the attention of international hotel investors, according to Union Investment.
The properties are located on Edinburgh’s East Market Street in the immediate vicinity of the Royal Mile. They form part of the New Waverley regeneration project, which is largely complete and will be finalised by 2021.
Union Investment was advised by Cushman & Wakefield.
