Property management company Pandox has agreed to acquire DoubleTree by Hilton Edinburgh City Centre in Scotland for around £49m ($64m).

The transaction will be funded through available cash reserves as well as a new bank loan.

DoubleTree by Hilton Edinburgh City Centre, which was refurbished in 2014, features 138 guest rooms, conference facilities, and a restaurant and bar.

Located near attractions such as the Royal Mile and Edinburgh Castle, the property claims to have strong occupancy rates.

Pandox anticipates an initial yield exceeding 7.5% from the hotel, with the potential to increase to around 9% through operational upgrades and targeted investments.

The company will operate the hotel under a management agreement with Axiom Hospitality.

Pandox will assess the hotel's brand strategy and operational model before the existing franchise agreement, which expires in 2027.

The transaction is due to be completed in the fourth quarter of 2024, after which the hotel will join the company’s Own Operations business segment.

Pandox CEO Liia Nõu said: "DoubleTree by Hilton Edinburgh City Centre is a nice addition to our hotel property portfolio. The hotel is performing well with the potential to further develop the hotel product and increase the return over time.

“The cooperation with Axiom Hospitality, which will comprise nine hotels in the UK, ensures effective operations and lower operational risk. The transaction is a good example of our ability to identify and make acquisitions which contribute to our earnings short term while also laying the foundation for additional value creation long term."

Pandox also owns Aparthotel Adagio Edinburgh Royal Mile in Edinburgh. 

Last week, Pandox acquired three aparthotels in London, UK, for £230m ($303.9m.