£20m refurbishment plan
Edinburgh’s Caledonian hotel sold in £85m deal
Another 50 guest rooms are planned for The Caledonian
One of Scotland’s most iconic hotels, The Caledonian Waldorf Astoria in Edinburgh, has been sold in an £85 million deal.
Abu Dhabi-based Twenty14 Holdings has acquired the 241-room hotel and plans to add a further 50 guest rooms in a two-year refurbishment programme costing £20m.
It is the largest hotel sale in Scotland since Diageo sold Gleneagles in 2015 and is the largest single asset trade in the regional UK market in the last twelve months.
Twenty14 Holdings is the hospitality investment arm of Lulu Group International and managing director Adeeb Ahamed said: “We are excited to add The Caledonian to the portfolio of Twenty14 Holdings.
“We are honoured to be part of this Scottish landmark that has a great significance for locals and visitors alike and look forward to adding to the experience The Caledonian already offers.”
The hotel, which opened in 1903 and currently operates under the Hilton’s flagship brand Waldorf Astoria, joins a portfolio of $650m worth of luxury property across the UK, the Middle East and India that Twenty14 has assembled since 2014.
JLL and HVS Hodges Ward Elliott jointly advised on the sale. JLL also arranged the debt financing for the purchaser.
Will Duffey of 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 Caley” follows the recent sales during 2017 of The Scotsman and The Bonham in Edinburgh. Over the last 12 months JLL have transacted more than £150m of hotels in Edinburgh.