Edinburgh set for major property deals as W hotel and stake in St James Quarter go on sale

“The quality of the development is absolutely outstanding,” says property firm Savills.

The landmark W Edinburgh hotel – one of the most distinctive buildings on the city’s skyline – has gone on the market alongside a stake in the £1 billion St James Quarter development that it calls home, in a deal expected to attract strong interest from global investors.

Property firm Savills has been jointly appointed with Eastdil Secured to market the disposal of the freehold full-service 244-room asset that was developed and opened in November 2023 (after several delays and some controversy over its design) under a long-term hotel management agreement with Marriott International. The hotel spans 174,300 square feet over ten storeys including a 360-degree rooftop, and has been named one of the 100 best places to stay in the UK.

Hide Ad
Hide Ad

Robert Stapleton, head of hotel capital markets at Savills, said: “We’re pleased to be appointed on the sale of the W Edinburgh. The quality of the development is absolutely outstanding and, being positioned in the centre of St James Quarter, Edinburgh’s busiest and best retail district, the hotel benefits from both an exceptional location, but also phenomenal footfall, which delivers strong demand for both the food & beverage and bedroom offerings at the W Edinburgh.

The landmark W Edinburgh hotel has become one of the most distinctive buildings on the city’s skyline. Picture: Ian Georgeson Photography.The landmark W Edinburgh hotel has become one of the most distinctive buildings on the city’s skyline. Picture: Ian Georgeson Photography.
The landmark W Edinburgh hotel has become one of the most distinctive buildings on the city’s skyline. Picture: Ian Georgeson Photography.

"Edinburgh is one of Europe’s standout hotel markets, and benefits from both high barriers to entry and an enviable mix of both corporate and leisure demand drivers, which have driven Edinburgh’s exceptional hotel performance over the past five years. The hotel is best in class in Edinburgh, and requires no additional capital expenditure. We’re confident that [it] will attract significant interest from global investors.”

Savills has separately been appointed by Nuveen Real Estate to market a 25 per cent interest in mixed-use development the St James Quarter. The centre, which covers 1.7 million sq ft including a shopping mall of 850,000 anchored by John Lewis and food market Bonnie & Wild, with footfall of more than 18 million a year. The scheme also includes the New Eidyn residential development, comprising 152 apartments, and 1,600 off-street car parking spaces, billed as comprising 75 per cent of all off-street car parking in the city.

Mark Garmon-Jones, director of UK investment at Savills, said: “This is an exceptional opportunity to acquire an interest in one of the most exciting lifestyle quarters in the UK.” Steve Wicks, head of retail, Europe, at Nuveen Real Estate, added: “Having spent the last eight years investing to develop the now-iconic quarter in the heart of Edinburgh, the time has come for us to sell our interest in line with our wider business plan for the development. The site and hotel are a resounding success story, both in terms of trading and the impact they have had on the city more generally, and we are immensely proud of the quarter we have created.

"Providing best-in-class amenities to the people of Edinburgh and all those who visit, while also creating thousands of jobs in the process, we have no doubt that the quarter will continue to flourish and benefit the local community. Both the hotel and shops will continue to operate as normal as we go through this process, with no impact to those working in, living in or visiting the space.”

Comments

 0 comments

Want to join the conversation? Please or to comment on this article.