Property sale

W Hotel and stake in St James Quarter on market

W Hotel at St James
W Hotel on market (pic: Terry Murden / DB Media Services)

Edinburgh’s newest landmark, the W hotel, has gone on the market alongside a stake in the £1 billion St James Quarter retail and leisure development.

The 244-room hotel opened in November 2023 under a long-term hotel management agreement with Marriott International. Built over 10-storeys and including a 360-degree rooftop, it has drawn attention, both favourably and critically.

Robert Stapleton, head of hotel capital markets at Savills, said: “Edinburgh is one of Europe’s standout hotel markets, and benefits from both high barriers to entry and an enviable mix of both corporate and leisure demand drivers, which have driven Edinburgh’s exceptional hotel performance over the past five years.”

He said he expects significant interest from global investors.

Savills has also been appointed by Nuveen Real Estate to market a 25% interest in the 1.7 million sq ft St James Quarter. Anchored by John Lewis and food market Bonnie & Wild, it has footfall of more than 18 million a year.

St James Quarter
St James Quarter (pic: Terry Murden / DB Media Services)

It includes the New Eidyn residential development, comprising 152 apartments and 1,600 off-street car parking spaces, accounting for 75% of all off-street car parking in the city.

Mark Garmon-Jones, director of UK investment at Savills, said: “This is an exceptional opportunity to acquire an interest in one of the most exciting lifestyle quarters in the UK.”

Steve Wicks, head of retail, Europe, at Nuveen Real Estate, added: “Having spent the last eight years investing to develop the now-iconic quarter in the heart of Edinburgh, the time has come for us to sell our interest in line with our wider business plan for the development.

“The site and hotel are a resounding success story, both in terms of trading and the impact they have had on the city more generally, and we are immensely proud of the quarter we have created.

“Providing best-in-class amenities to the people of Edinburgh and all those who visit, while also creating thousands of jobs in the process, we have no doubt that the quarter will continue to flourish and benefit the local community.

“Both the hotel and shops will continue to operate as normal as we go through this process, with no impact to those working in, living in or visiting the space.”

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