USA based Union Investment is set to acquire two hotel properties in Edinburgh’s historic city center namely Premier Inn with 127 rooms and Hub by Premier Inn with 121 rooms for approximately $55.9 million (€43.4m GB) from the vendor MAS Real Estate. The properties are on a long- term lease to Whitbread, an experienced operator and the transaction is Union Investment’s first hotel transaction in Scotland. Union Investment was advised by Cushman & Wakefield for the acquisition.
Located on the proximity of the main railway station and the famous Royal Mile, the hotel properties are located on Edinburgh’s East Market Street. Part of the New Waverley redevelopment project which is expected to be completed by 2021, the hotel property consists of three separate buildings out of which two five-storey units are used for the two hotels, while an Indian restaurant occupies a further two-storey building. Additionally the property also includes a coffee shop and a food and flea market.
According to Andreas Locher, head of Investment Management Hospitality at Union Investment Real Estate:
“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.”
About Union Investment
Headquartered in the US, Union Investment Management Group is a privately owned investment manager that provides its services to endowments, foundations, pensions, high-net-worth individuals, families, and trusts. Union Investment launches and manages equity and fixed income mutual funds for its clients.