Edinburgh’s four-start Radisson Blu hotel has been sold to a German investment firm after going on the market with a guide price of £59 million.
Although the sale price was not disclosed, property agent JLL said the deal was the biggest in Scotland’s hotel sector since the Radisson SAS in Glasgow was sold in 2007 for £68m.
JLL and CBRE were appointed to sell the 238-room Radisson Blu last year by joint administrators Peter Allen and John Reid of Deloitte. The venue, which is let to hotel operator Rezidor, has been bought by German investor Deka Immobilien on behalf of WestInvest’s TargetSelect Hotel fund.
The deal also included a youth hostel and retail unit, plus a site to the rear with “significant development potential”.
Kerr Young, director of hotels and hospitality for JLL, said: “The Radisson Blu in Edinburgh offers not only a secure income stream with great covenant strength, but also prime real estate in Scotland’s historic capital – one of the most sought-after hotel markets in Europe.
“Since the hotel went up for sale, alongside the Park Inn by Radisson in Manchester, we have received a huge amount of interest, underlining the appetite from investors in today’s market.”
CBRE and JLL also announced yesterday that Manchester’s Park Inn hotel, which went on the market for £20m, has been acquired by The Ability Group, owner of the Premier Inn on Glasgow’s Ballater Street and the Hilton Dunblane Hydro.
Paul Collins, senior director at CBRE Hotels, said: “The hotels are fantastic assets for WestInvest and The Ability Group, and we are certain that the current buoyant investment market will continue into 2015 as disappointed investors seek alternative opportunities.”