THE new owner of Edinburgh’s landmark Caledonian hotel has revealed it will continue to look for further opportunities to invest in the Scottish hotel industry as the continuing weakness of the pound since the Brexit vote makes it attractive to buy property in the UK.

Middle East investment firm Twenty14 Holdings snapped up the “Caley” for £85 million in the biggest deal seen in the Scottish hospitality sector since Gleneagles changed hands in 2015.

Asked whether the plunge in the pound since the 2016 Brexit vote had made the deal more achievable, managing director Adeeb Ahamed declared: “Absolutely, with the pound moving down it made it more [accessible] to have this opportunity.

“Yes, we’re looking at more opportunities in Scotland and elsewhere in the UK. With the pound being at a more acceptable level it is a great opportunity to be part of the UK at this point in time. If any good investment [opportunity] comes our way we will be more than happy to review it.”

Twenty14 is the hospitality investment arm of Lulu Group International, which has assets worth more than $650 million across the UK, Middle East and India.

Its only other asset in the UK at present is the former Great Scotland Yard building in London’s St James’ District, which it is currently developing into five-star boutique hotel in a project worth £110m. The Grade II listed Edwardian building was acquired by Twenty14, which aims to open the hotel by the end of this year, three years ago.

Mr Ahamed declared the company was “very happy” with the acquisition of the Caley, a Victorian railway hotel which overlooks Edinburgh Castle. He described the hotel, which dates from 1903, as a “landmark” property which has stood the test of time in the Scottish hospitality industry.

“It is a great opportunity for us to be part of this great city you have,” he added, highlighting the attraction of Edinburgh’s status as a UNESCO World Heritage site.

Past guests of The Caledonian include former US President Barack Obama, who stayed at the 254-room hotel during his first visit to Scotland in the spring of 2017.

Twenty14 immediately announced its intention to expand the Caley, with planning permission in place to add 50 rooms at the hotel.

It plans to refurbish the hotel’s historic Caledonian suites and develop its food and beverage offer, which currently includes two restaurants run by Michelin-starred chefs – and brothers – Chris and Jeff Galvin.

Twenty14 said it would create more jobs at the hotel because of its plans, without specifying a precise number.

The expansion is due to start in early 2019 and take two years to complete.

“We will bring it to the utmost standards of the British hospitality industry,” Mr Ahamed said.

He was unable to say whom Twenty14 had bought the property from beyond stating it was a financial institution. The website of the Scottish Assessors Association currently lists the hotel’s proprietor as Shilling Real Estate Limited, with Hilton named as the tenant.

The Caledonian sits on the west end of Princes Street, and will continue to trade under Hilton’s Waldorf Astoria brand.

Its sale was the biggest hotel deal in Scotland since Diageo offloaded Gleneagles for £150 million in 2015. The five-star Perthshire resort was bought by private investment firm Ennismore, which owns the Hoxton chain of boutique hotels in London.

Notable hotel sales to have taken place in Scotland in the last 12 months include G1 Group’s acquisition of The Scotsman Hotel on Edinburgh’s North Bridge.

The last year has also seen Edinburgh boutique hotel The Bonham sold by Starwood Capital to a US investment firm led by American fund manager Richard H Driehaus.

JLL director Keith Young said: “Edinburgh continues to be one of the best performing and most sought after European hotel markets by both domestic and overseas buyers.”