Castleforge Partners has acquired Edinburgh hotel, the Crowne Plaza Royal Terrace for an undisclosed amount.
The 97-room hotel, located nearby to the newly re-developed St James Centre, will undergo refurbishment before being re-launched in March 2022.
This is the third hotel investment Castleforge has made this year, as the London-based property investment firm continues to strengthen its portfolio in the hospitality sector.
In May, Castleforge announced a deal for the Bruntsfield Hotel in Edinburgh, shortly followed by the purchase of the Hilton Hotel in Cardiff in June. Castleforge has appointed Axiom Hospitality to manage all three assets.
Since its inception in 2010, Castleforge has invested approximately £1 billion in office and residential real estate across the UK and Europe.
In 2020, the firm signalled its intentions to expand into the hospitality sector with the appointment of Matt Lederer from Marriott International as its hotel acquisitions director.
“We are thrilled to add the Crowne Plaza to our portfolio of hotels. It is in a prime location in one of the most exciting areas of Edinburgh and we are looking forward to working with Axiom and IHG Hotels & Resorts to bring the best out of this hotel for guests, staff and investors alike,” Lederer said.
“Now is a particularly exciting time to be investing in hotels as the tourism industry shows signs of recovery from the pandemic and we will continue to seek exciting investment opportunities in this space.”
JLL advised on the deal.