Edinburgh’s historic Caledonian Hotel sold for £85m

Edinburgh’s historic Caledonian Hotel sold for £85m

It is one of the grandest railway hotels ever built, a reminder of a time when you could take a train from the west end of Princes Street.

Now the Caledonian Hotel, a red sandstone landmark beloved by generations of Edinburgh residents, has been sold to an overseas investor in a deal worth £85m.

Its new owner is Abu Dhabi-based Twenty14 Holdings – the hospitality investment arm of Lulu Group International - but the hotel will continue to operate under the Hilton’s flagship brand Waldorf Astoria. The deal represents the biggest hotel sale in Scotland in three years and the largest in the UK in the past 12 months. The recently refurbished, 254-room hotel opened its doors in 1903 and is affectionately known by locals as the Caley, a nod to the Caledonian Railway Company which paid for its construction as part of the now-closed Princes Street railway station.

The hotel has long welcomed the rich and famous. Notable former guests include US president Barack Obama, comedy legends Laurel and Hardy, Hollywood superstars Carey Grant and Liz Taylor, and King Hussein of Jordan. “The hotel has long been seen as a jewel in the crown of the UK hotel market,” said Will Duffey of investment management firm JLL, which advised on the sale. “Our client’s recent refurbishment programme repositioned the hotel to its former glory when it reopened as the first Waldorf Astoria in the UK in 2012. We are delighted to have advised on this irreplaceable trophy hotel overlooking Edinburgh Castle to an investor who will preserve and protect this most important of assets for generations to come”.

The hotel has long welcomed the rich and famous. Notable former guests include US president Barack Obama, comedy legends Laurel and Hardy, Hollywood superstars Carey Grant and Liz Taylor, and King Hussein of Jordan. “The hotel has long been seen as a jewel in the crown of the UK hotel market,” said Will Duffey of investment management firm JLL, which advised on the sale. “Our client’s recent refurbishment programme repositioned the hotel to its former glory when it reopened as the first Waldorf Astoria in the UK in 2012. We are delighted to have advised on this irreplaceable trophy hotel overlooking Edinburgh Castle to an investor who will preserve and protect this most important of assets for generations to come”.

Lulu Group International managing director Adeeb Ahamed said: “We are excited to add The Caledonian to the portfolio of Twenty14 Holdings. “We are honoured to be part of this Scottish landmark that has a great significance for locals and visitors alike and look forward to adding to the experience The Caledonian already offers.” The Caley opened just a year after Edinburgh’s other grand railway hotel, the Balmoral, which was originally known as the North British. Both the landmark buildings would fall into public ownership following the nationalisation of the UK’s railways in 1948, before later being returned to private control. Princes Street railway station was closed in 1965, but the original station clock can still be viewed inside the Caledonian’s Peacock Alley lounge bar.

Article Credit; The Scotsman