Henderson Park, the private real estate investment fund manager, with its in-house hospitality operator and asset manager, Klarent Hospitality, has bought the landmark Waldorf Astoria Edinburgh – The Caledonian.
The price paid has not been disclosed but is understood to be around £80 million.
Completed in 1903, the five star 241-room hotel is a category A listed building with a red sandstone facade. The ‘Caley’, as the hotel is known locally, has a list of famous former guests having hosted the late Queen Elizabeth II and former US President Barack Obama, as well as Hollywood legends including Laurel and Hardy, Judy Garland, Charlie Chaplin and Sean Connery.
The hotel, which takes its name from the Caledonian Railway Company, the original owner of the building, is on Princes Street, Edinburgh’s main retail street.
Henderson Park and Klarent Hospitality said they have identified a number of opportunities to invest in the hotel to create value and improve the consumer experience, including room renovations, as well as upgrading and restoring public areas and facilities.
It is the third Edinburgh hotel in Henderson Park’s Klarent Hilton portfolio, having purchased the Carlton on North Bridge, at the other end of Princes Street, and the Doubletree Edinburgh Airport as part of a 2,424-room, 12-hotel portfolio acquisition in November 2021.
Nick Weber, chief executive and founder of Henderson Park, said in a statement: “This transaction presents us with a rare opportunity to acquire an iconic hotel with an incredible 120-year heritage that is part of the very fabric of Edinburgh society. As custodians of this landmark property, we have a number of planned investments that will improve the guest and visitor experience and ensure the Caley retains its status as one of Edinburgh’s most emblematic hotels going forward.”
John Brennan, chairman of Klarent Hospitality, added: “In the wake of COVID-19 Edinburgh has proven to be one of the most resilient real estate and hospitality markets in the UK. Our Edinburgh Carlton hotel, for example, delivered significant revenue per room growth last year compared to 2019, which was driven by a quicker than expected recovery in overseas tourism and business travel and supported by continued strong domestic leisure demand. Our plans for The Caledonian will ensure that it remains well placed to capture this strong demand.”
JLL advised the seller on the transaction.