The ‘Caley’ is one of Scotland’s landmark hotels

One of Scotland’s premier hotels is said to be close to changing hands in an £85 million deal.

Twenty14 Holdings is reported to be in talks about selling the 120-year-old Caledonian Waldorf Astoria at the west end of Princes Street, Edinburgh.

Hilton has continued to operate the former railway hotel since selling it in 2018 in what was viewed as biggest hotel deal in Scotland since Diageo offloaded Gleneagles for £150m to private investment firm Ennismore in 2015.

Twenty14 is the hospitality investment arm of Abu Dhabi-based Lulu Group International, which has assets worth more than $650m across the UK, Middle East and India.

Real estate specialist React News said that if the deal is completed, it will be “one of the largest single UK regional hotel trades” in recent years.

Neither party has commented on the report.