PATRIZIA has invested £25 million ($31.8 million) in the Malmaison Edinburgh City Center hotel on behalf one of its U.K. institutional clients.
The 72-bed boutique hotel commands a prime location on St Andrew’s Square close to Edinburgh Castle, St James Quarter and the Royal Mile.
The hotel has an attractive inflation-linked, long-income profile, with a 30-plus year lease with a U.K. boutique hotel group. The asset has the third-highest average daily date (ADR) in Malmaison’s 17-property portfolio and is expected to reach 85 to 90 percent occupancy this year.
The hotel was redeveloped and launched in 2020, showcasing high standards in design and architecture that is in keeping with the city’s UNESCO world heritage status.
Edinburgh has outperformed domestic hotel markets thanks to its tight supply and growing tourism demand after the pandemic. It is the United Kingdom’s second-most visited city, with 4.5 million overnight visitors in 2022, of w
