Schroders Capital, the $99.3 billion private markets business of Schroders, has completed its acquisition of the 244-bed, W Edinburgh hotel in the centre of the city from Nuveen Real Estate.
W Edinburgh, Marriott International’s first luxury property in the market and the first W Hotel in Scotland, opened in November 2023 and makes up part of the larger £1 billion, retail-led St James Quarter.
The hotel comprises three distinct buildings: the Ribbon Building, James Craig Walk and the Quarter House. James Craig Walk is a heritage-listed terrace named after the Scottish architect, dating from 1775.
The newly-built Quarter House design was inspired by traditional Edinburgh architecture, interlinking with the 12-storey Ribbon Building which has panoramic views over the city.
The purchase price was undisclosed, but Green Street News reported in December that Nuveen was in talks to sell the hotel for more than £100 million. Savills was appointed by Nuveen to sell the property in June, as revealed by CoStar News.
Previous luxury hotel deals in the city have been large, such as the £85 million sale of The Caledonian Waldorf Astoria Hotel by Twenty14 Holdings to international private equity real estate firm Henderson Park and Klarent Hospitality in 2023, read here.
James MacNamara, global head of value-add and alternatives, real estate, Schroders Capital, said in a statement: "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.
"We expect this investment to follow many other successful collaborations between Schroders Capital and Marriott International in the luxury hotels space such as the St Regis in Venice and The Westin Palace in Milan."
Schroders Capital manages £3.1 billion of investments in hotel businesses operated run by a team of 40 across its offices in London, Paris, Milan and Amsterdam.
Ed Webb, director of development management, 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 whilst also providing a best-in-class offering worthy of Edinburgh’s status as a global tourist destination and recognised by being awarded Scottish hotel of the year 2025."
Schroders Capital and its clients were advised by CMS and Carey Olsen. Nuveen Real Estate was advised by Savills and Eastdil Secured.