Private real estate investment fund manager Henderson Park and its in-house hospitality operator and asset manager, Klarent Hospitality, have acquired the five-star Waldorf Astoria Edinburgh – The Caledonian.
The landmark hotel was reportedly sold by Twenty14 Holdings for £85 million.
Completed in 1903, the 241-room Waldorf Astoria Edinburgh is a category A listed building with an iconic red sandstone façade, which has been part of the social fabric of Edinburgh for over 120 years. The ‘Caley’, as the hotel is known locally, has hosted Her Majesty the late Queen Elizabeth II and former U.S. President Barack Obama, as well as Hollywood legends including Laurel and Hardy, Judy Garland, Charlie Chaplin and Sean Connery to name but a few.
The hotel is on Princes Street, Edinburgh’s main retail street, close to Edinburgh’s two main train stations, the main business district and the Edinburgh International Conference Centre.
Investing to create value
Henderson Park and Klarent Hospitality have identified a number of opportunities to invest in the hotel to create value and improve the consumer experience, including room renovations as well as upgrading and restoring public areas and facilities.
This is the third Edinburgh hotel in Henderson Park’s Klarent Hilton portfolio, having purchased the Carlton on North Bridge, at the other end of Princes Street, and also the Doubletree Edinburgh Airport as part of a 2,424 room / 12 hotel portfolio acquisition in November 2021.
Nick Weber, CEO and Founder of Henderson Park says, “This transaction presents us with a rare opportunity to acquire an iconic hotel with an incredible 120-year heritage that is part of the very fabric of Edinburgh society. As custodians of this landmark property, we have a number of planned investments that will improve the guest and visitor experience and ensure the Caley retains its status as one of Edinburgh’s most emblematic hotels going forward.”
John Brennan, Chairman of Klarent Hospitality, says, “In the wake of Covid 19 Edinburgh has proven to be one of the most resilient real estate and hospitality markets in the U.K. Our Edinburgh Carlton hotel, for example, delivered significant revenue per room growth last year compared to 2019, which was driven by a quicker than expected recovery in overseas tourism and business travel and supported by continued strong domestic leisure demand. Our plans for The Caledonian will ensure that it remains well placed to capture this strong demand.”
JLL advised the seller on the transaction.
