PATRIZIA has acquired the Malmaison hotel in Edinburgh city centre on behalf one of its UK institutional clients for circa £25m.
The 72-bed boutique hotel is located in a prime location on St Andrew’s Square close to Edinburgh Castle, St James Quarter and the Royal Mile.
The hotel, which was redeveloped in 2020, benefits from an attractive inflation-linked long income profile, with a 30+ year lease with one of the UK’s leading boutique hotel groups.
Phil Irons, head of transactions for UK&IE at PATRIZIA, said: “We are pleased to have acquired this exceptional asset in an off-market deal to further our client’s strategy to diversify into alternative sectors like hospitality. Edinburgh’s world-renowned reputation for culture, sport and business make it one of Europe’s strongest hotel markets, which is being further driven by the post-pandemic recovery in international tourism.
“While the transactions market remains muted, the current conditions continue to present attractive opportunities for us to acquire re-priced core assets that benefit from strong fundamentals.”
Duncan White, director of fund management at PATRIZIA, added: “We are really pleased to have found another strong re-priced core investment opportunity for one of our UK institutional clients. The Malmaison hotel is an evergreen property supported by strong occupational market fundamentals. We hope to acquire similar attractive re-priced core opportunities throughout the remainder of 2024 and beyond.”
PATRIZIA was advised by JLL, Burness Paull and Colliers.
