A TOP city hotel has been sold to a US-based investment firm in a multi-million pound deal – which is said to be the biggest in financial terms in the Capital since 2007.
The four-star Roxburghe hotel in Charlotte Square is now owned by American property giants Starwood Capital.
Bosses were remaining tight-lipped on the exact sums involved, but professional services firm JLL, which managed the sale by the Crowne Plaza group, said investors the world over were keen to establish a foothold in the Capital’s thriving hospitality industry.
Keith McBain, director at JLL, said: “This is a landmark deal for the Edinburgh and Scottish market, underlining its status as a hugely attractive destination for investors.
“The hotel, which has 199 guest rooms, has seen continual investment to improve the facilities for visitors since it was purchased in the late 1990s and we expect the new owners to continue that.”
Parts of the Roxburghe date back to 1791, although the original hotel has grown into adjoining properties through the years. It underwent a major refurbishment in 2013, which saw the hotel rebranded as Crowne Plaza Edinburgh – The Roxburghe. Business leaders in the Capital said the purchase was yet another sign that the hotel industry was thriving.
Graham Birse, director of the Edinburgh Institute Business School at Napier University, agreed and said: “For that reason it’s worthwhile to buy a hotel in Edinburgh, which continues to attract hotel investment and the industry has proved to be quite durable.”
The hotel’s Charlotte Square home is one of the most prestigious addresses in the Capital, home to the First Minister’s official residence Bute House and several properties owned by the National Trust.
George Nicholas, executive vice-president at JLL, said: “We placed this off-market opportunity with a small number of capable investors who had recently expressed strong interest in Scotland.
“We see this interest in Scotland as an increasing trend, with money from domestic and overseas sources – particularly North America, China and elsewhere in the Far East.
“There is real appreciation of the added value, compared with London, and Edinburgh along with a few other Scottish cities are best placed to benefit from that sentiment.”