Daily Newsletter

13 June 2024

Daily Newsletter

13 June 2024

W Edinburgh hotel and St James Quarter stake up for sale

Nuveen Real Estate has appointed Savills to sell the freehold interest in the 244-room, ten-storey property.

Luke Martin June 12 2024

Just months after opening, the W Edinburgh hotel in Scotland's capital city, known for its distinctive design which has been likened to a chocolate walnut whip, is on the market alongside a 25% stake in the surrounding St James Quarter development.

The hotel's owner, Nuveen Real Estate, has appointed Savills to sell the freehold interest in the 244-room, ten-storey property.

The hotel is operated under a long-term agreement with Marriott International and has 360-degree rooftop bar with panoramic views.

While the hotel's design has been a source of debate among locals, its location in the heart of Edinburgh's premier shopping district is undeniable.

Savills highlighted the property's "exceptional location" and "phenomenal footfall" - both factors expected to attract strong investor interest.

The sale also includes a 25% stake in the wider St James Quarter development, encompassing a shopping centre with major retailers, a 152-unit residential complex and an underground car park.

Savills anticipates significant global interest in the offering.

Robert Stapleton, head of hotel capital markets at Savills, stated: “The quality of the development is absolutely outstanding and, being positioned in the centre of St James Quarter, Edinburgh’s busiest and best retail district, the hotel benefits from an exceptional location and also phenomenal footfall which delivers strong demand for both the food and beverage and bedroom offerings."

“Edinburgh is one of Europe’s standout hotel markets, and benefits from both high barriers to entry and an enviable mix of both corporate and leisure demand drivers which have driven Edinburgh’s exceptional hotel performance over the past five years.”

With its prime location, established brand affiliation and lack of required capital expenditure, the W Edinburgh hotel presents a compelling opportunity for investors seeking a foothold in a flourishing European market.

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