Malmaison hotel on St Andrews Square in Edinburgh has been acquired for £25m by German investment manager Patrizia on behalf of a UK institutional investor.
The 72-bed hotel was relaunched in December 2019 and is believed to have the third highest average daily room rate in Malmaison’s portfolio which included Manchester Deansgate, London, Liverpool, Oxford, Birmingham, Brighton and Leeds.
Phil Irons, head of transactions for UK and Ireland at Patrizia, commented, “We are pleased to have acquired this exceptional asset in an off-market deal to further our client’s strategy to diversify into alternative sectors like hospitality.
“Edinburgh’s world-renowned reputation for culture, sport and business make it one of Europe’s strongest hotel markets, which is being further driven by the post-pandemic recovery in international tourism.”
Irons continued, “While the transactions market remains muted, the current conditions continue to present attractive opportunities for us to acquire re-priced core assets that benefit from strong fundamentals.”
Patrizia was advised by Burness Paull, JLL and Colliers.
The Malmaison and Hotel du Vin group were bought by Frasers Hospitality in 2015 for £363.4m with Manchester Deansgate opening earlier this year. Operating across 25 UK cities and with 35 boutique hotels, Malmaision itself was launched almost 30 years ago by Glasgow hotelier Ken McCulloch, and it’s first hotel opened in Edinburgh’s Leith in 1994.