Union Investment has acquired two hotel properties in Edinburgh’s historic city centre. Since its opening in 2016, the 248-room development has been occupied by two hotel formats − a Premier Inn with 127 rooms and a Hub by Premier Inn with 121 rooms. The vendor is MAS Real Estate and the purchase price is approximately EUR 43.4 million. The hotel properties are let on a long-term leases to experienced operator Whitbread. The acquisition is being made on behalf of open-ended real estate fund Unilmmo: Global and is Union Investment’s first hotel transaction in Scotland. The buyer was advised by Cushman & Wakefield.
“We have been investing successfully for several years in the high-growth budget and midscale hotel segment across Europe. The Premier Inn and Hub by Premier Inn brands provide further diversification in our portfolio. We are delighted to be adding two Premier Inn hotels to our holdings, particularly as both formats have already proven effective at the location,” said Andreas Löcher, head of Investment Management Hospitality at Union Investment Real Estate GmbH. After London, Edinburgh is the most popular travel destination in the UK and is increasingly attracting the attention of international hotel investors. The Premier Inn brand currently comprises around 800 hotels, while ten hotels are operated under the Hub by Premier Inn brand, which features more compact rooms. Further growth is planned for both brands.
The acquired hotel properties are located on Edinburgh’s East Market Street in the immediate vicinity of the main railway station and the famous Royal Mile, the city’s biggest tourist draw. The property is part of the New Waverley redevelopment project, which is largely complete and will be finalised by 2021. This redevelopment project involves transforming a former railway site into a modern, urban district encompassing varying uses. The hotel property consists of three separate buildings: two five-storey units are used for the two hotels, while an Indian restaurant occupies a further two-storey building. The complex also includes a coffee shop, and a food and flea market.
Source : Company