EDINBURGH’s prestigious Caledonian Hotel has been sold in an £85 million deal.

The five-star hotel, which is run by Hilton under its high-end Waldorf Astoria brand, has been acquired by Abu-Dhabi-based Twenty14 Holdings.

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

Twenty14 has pledged to expand the property with the addition of 50 new rooms and create jobs at the historic railway hotel, which dates from 1903. Known affectionately as The Caley, the Victorian hotel sits at the west end of Princes Street, offering views of Edinburgh Castle.

Adeeb Ahamed, managing director of Twenty14 Holdings “We are excited to add The Caledonian to the portfolio of Twenty14 Holdings. With more than hundred years of history, The Caledonian brings with it a rich heritage, character and unique opulence.

“We are honoured to be part of this Scottish landmark that has a great connect with the locals and visitors alike. We look forward to adding to the experience The Caledonian already offers.”

The new owner has pledged to work with local “artisans” to enhance the hotel’s historical Caledonian Suites, and develop its food and beverage offer, from the start of 2019.

The hotel, which has two restaurants run by Michelin-starred chefs and brothers Chris and Jeff Galvin, will continue to be run under the Waldorf Astoria brand.

Mr Ahamed 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.