THE Radisson Blu Hotel on Edinburgh's Royal Mile has been snapped up by a German investment company.
The four-star hotel has been sold to German Deka Immobilien (GmbH) in what has been heralded as the biggest deal in the industry since 2007.
While it had been brought to market with a price tag of £59 million, the value of the transaction has not been disclosed.
The hotel was formerly part of the WG Mitchell property empire, which went bust in 2010.
John Reid and Peter Allen, joint administrators and joint liquidators for the company at Deloitte, instructed property firms CBRE and JLL to handle the sale.
The agents were also tasked by Deloitte to sell Manchester's Park Inn at an asking price of £20m. It was sold to UK investor The Ability Group, it was announced yesterday.
The Radisson Blu, based in the heart of Edinburgh's Old Town, is currently let to hotel management company Rezidor. It holds the lease until 2028, with an option to extend.
It has 238 bedrooms, a restaurant, bar, conference rooms and leisure facilities. A youth hostel and retail unit to the rear, believed to offer development opportunity, were included in the sale.
GmbH acquired the property on behalf of the TargetSelect Hotel fund of investment company WestInvest Gesellschaft fur Investmentfonds.
Dusseldorf-based GmbhH manages several billion Euros worth of assets for investors in 15 European countries.
Kerr Young, director of hotels and hospitality at JLL, said: "The Radisson Blu in Edinburgh offers not only a secure income stream with great covenant strength, but also prime real estate in Scotland's historic capital - one of the most sought after hotel markets in Europe.
"Since the hotel went up for sale, alongside the Park Inn by Radisson in Manchester, we have received a huge amount of interest, underlining the appetite from investors in today's market."
Paul Collins of CBRE Hotels noted: "The hotels are fantastic assets for WestInvest and The Ability Group, and we are certain that the current buoyant investment market will continue into 2015 as disappointed investors seek alternative opportunities."
The Manchester Park Inn by Radisson is the latest addition to The Ability Group portfolio, which includes a Premier Inn in Glasgow, the Doubletree by Hilton Dunblane Hydro and Hilton hotels in Liverpool and London (Syon Park).
The Manchester hotel, based close to the Phones4U Arena, has 252 bedrooms and restaurant, bar, conference and leisure facilities.
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