Landmark Edinburgh hotel likened to a walnut whip sold in key deal

A landmark Edinburgh hotel that has divided opinion since it opened less than two years ago has been sold.

Schroders Capital, part of asset management giant Schroders, has acquired the distinctive W Edinburgh hotel from Nuveen Real Estate in a property investment deal, for an undisclosed sum.

The 244-bedroom hotel, which incorporates a ribbon design and 360-degree views of the capital and has been likened to a walnut whip, among other things, opened in November 2023 at the heart of the £1 billion St James Quarter retail and leisure complex. Nuveen Real Estate put the hotel up for sale last year and some reports had suggested a price tag in excess of £100 million.

The W Edinburgh hotel under construction at the city's St James Quarter development. Picture by Lisa Ferguson

Marriott International’s W Edinburgh was the first W Hotel in Scotland, offering luxury accommodation and dining options.

James Macnamara of Schroders Capital said: “The addition of the W Edinburgh to our portfolio is hugely exciting, as we continue to identify top-tier hotel assets that can facilitate multiple ways to create value and offer significant long-term growth potential.

“Edinburgh is an attractive market for Schroders Capital and we look forward to working with the highly experienced and agile team at the hotel to ensure guest experience remains in line with the W brand quality and ethos.”

Ed Webb, director of development management at Nuveen, added: “The completion of the sale of the W Edinburgh marks a considerable milestone for St James Quarter as the first transaction realises over a decade of planning and development to deliver a leading destination in the heart of Edinburgh and the completion of a vision shared by our investors. The hotel itself has become an iconic landmark within the city centre.”

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