Germany-based investment manager Patrizia has purchased the Malmaison Edinburgh City hotel in an off-market deal.
The St Andrews Square hotel was sold for around £25 million to one of Patrizia’s UK institutional clients, it is reported.
The 72-bedroom property has a 30-year lease, the third-highest average daily room rate among Malmaison hotels is expected to reach 85-90% occupancy this year.
Phil Irons, head of transactions for UK and Ireland at Patrizia, says, “We are pleased to have acquired this exceptional asset in an off-market deal to further our client’s strategy to diversify into alternative sectors like hospitality.
“Edinburgh’s world-renowned reputation for culture, sport and business make it one of Europe’s strongest hotel markets, which is being further driven by the post-pandemic recovery in international tourism.
“While the transactions market remains muted, the current conditions continue to present attractive opportunities for us to acquire re-priced core assets that benefit from strong fundamentals.”
Duncan White, director of Fund Management at Patrizia, says, “We are really pleased to have found another strong re-priced core investment opportunity for one of our UK institutional clients.
“The Malmaison hotel is an evergreen property supported by strong occupational market fundamentals. We hope to acquire similar attractive re-priced core opportunities throughout the remainder of 2024 and beyond.”
Patrizia was advised by JLL’s Hotels & Hospitality Group, Colliers and Burness Paull.
