One of Scotland’s top hotels, the Caledonian Waldorf Astoria Edinburgh, has been acquired in a deal said to be worth £85 million.

The new owners are Henderson Park, a private real estate investment fund manager, along with Klarent Hospitality, a hotel operator and asset manager.

Talk of a deal emerged in May when Twenty14 Holdings first hinted at selling the 120-year-old hotel at the west end of Princes Street.

The 241-room Caledonian, best known as the Caley, becomes the third Edinburgh hotel in the Hilton portfolio of Henderson Park and Klarent.

It follows the group’s purchase of the Carlton on North Bridge and the DoubleTree Edinburgh Airport as part of a collection of 12 hotels in November 2021.

Since its launch in 2016, London-based Henderson Park has invested $14 billion in real estate assets across Europe in sectors such as hospitality, retail, offices and student housing.

Many of the hotel assets it acquires are either managed or franchised by Hilton Worldwide, including the Metropole hotels in Birmingham and London. The latter is one of Britain’s biggest hotels with 1,059 rooms.

Twenty Fourteen Holdings is based in Abu Dhabi and is part of Yusuff Ali’s LuLu Group International with assets of more than $650m assets across the UK, Middle East and India. The Indian billionaire bought the Caledonian from Goldman Sachs in 2018, for the same price as the latest deal.

Hilton has continued to operate the former railway hotel which was relaunched under the American group’s Waldorf Astoria brand in 2012 after a £24 million upgrade.