Redefine International, the income focused UK Real Estate Investment Trust has purchased the Doubletree by Hilton Hotel in Edinburgh’s city centre for £25.27 million, representing a net initial yield of approximately 6.9%.
The Hotel provides 138 bedrooms which have recently been extensively refurbished to provide high quality flexible accommodation appealing to both business travellers and tourists. The five storey Hotel has extensive food and beverage provision, meeting rooms and a small fitness centre.
The Acquisition also includes the separate heritable title of The Chanter public house, located on the ground and basement floors of the property.
As Scotland’s capital city and the UK’s second largest financial centre after the City of London, Edinburgh is a key hub in the UK transport network and a thriving year round tourist destination.
The Hotel will be let to Redefine Hotel Management Limited, a wholly owned subsidiary of Redefine BDL Hotel Group Limited, in which Redefine International has a 25.28% stake.
Mike Watters, Chief Executive of Redefine International, said:
“The transaction was structured on a conditional basis subject to a no vote in the Scottish referendum. Now that the uncertainty surrounding this has been removed we are very pleased to have secured this opportunistic investment in the city of Edinburgh which complements our existing hotel portfolio and plays well to the management skills of Redefine BDL.”