Boost for tourism
Crowne Plaza Hotel acquired by Castleforge
Crowne Plaza Hotel: will be refurbished and re-launched
One of Edinburgh’s biggest hotels, the Crowne Plaza Royal Terrace, has been acquired by a London-based property investment firm in an off-market deal.
Castleforge Partners will undertake a full refurbishment of the 97-room hotel ahead of its being re-launched next March.
Property and investment management group JLL advised on the deal. Terms were not disclosed.
The Crowne Plaza is close to the new £1 billion St James Quarter shopping, leisure and residential development in the east end of the city centre and is the third hotel investment Castleforge has made this year.
In May it acquired the Bruntsfield Hotel in the southside of Edinburgh, shortly followed by the purchase of the Hilton Hotel in Cardiff in June. Axiom Hospitality will manage all three assets.
Since its inception in 2010, Castleforge has invested approximately £1bn and last year signalled its intentions to expand into the hospitality sector with the appointment of Matt Lederer from Marriott International as its hotels acquisitions director.
He said: “Now is a particularly exciting time to be investing in hotels as the tourism industry shows signs of recovery from the pandemic and we will continue to seek exciting investment opportunities in this space.”
Alex Pritchard, Co-CEO of Axiom Hospitality said: “We are pleased to be working with Castleforge once again on their latest hotel acquisition, particularly in Edinburgh as it is known for having some of the most sought-after hotels in the world.
“We are looking forward to repositioning the hotel, making it an exciting place to work, and welcoming guests from across the UK and abroad.”
Kerr Young, director at JLL added: “This is the fourth hotel transaction JLL have brokered in Edinburgh during 2021 and is yet further evidence on the long-term confidence investors have in the sector.”