Investment partnership LRO Hospitality has added the Courtyard by Marriott hotel in Edinburgh to its growing portfolio.
The 240 room hotel was put up for sale by a fund managed by CVC Marathon, with agents JLL in charge of the sale. Marathon Asset Management acquired the long leasehold of the hotel in late 2021, and passed operations to third party manager Valor Hospitality. The investor has subsequently been acquired by CVC Capital Partners, and now some rationalisation of the group’s holdings is under way.
Buying in Major European Cities
The acquiring vehicle is a joint venture between hotel group L+R, and Dutch pension fund PGGM. The Edinburgh hotel joins another recent acquisition, the Marriott Brussels Grand Place, and LRO is actively seeking to add further suitable properties to its fund. It is looking for well located hotels in European gateway cities, convinced of their long term investment return.
In addition to owning the assets, there is also potential upside from operating the properties efficiently. L+R will deploy its in-house expertise, the team within its Iconic Hotels & Resorts operation, to manage the newly added Edinburgh hotel.
“The acquisition of Courtyard by Marriott Edinburgh represents another important step in the growth of the LRO Hospitality platform and demonstrates the strength of our partnership with PGGM,” commented Henri Wilmes, the chief investment officer for LRO. “This latest acquisition, following our recent investment activity in Brussels, reflects our confidence in the European hospitality sector and the significant opportunities we continue to see across the market.”
Marathon Asset Management acquired the long leasehold of the hotel in late 2021, and passed operations to third party manager Valor Hospitality.
The Edinburgh hotel market has seen several recent openings. Fattal Hotels has launched its boutique offering, NYX Edinburgh Old Town, which sits alongside the group’s Leonardo Royal, which has been extended. And hybrid hotel-hostel operator Meininger has opened in the city, in a converted office block that has a total of 549 beds in a mix of regular hotel style rooms, up to shared dormitory style rooms for travelling school and college groups.
Conversions Create New Hotels
Spring 2027 will see completion of another hotel conversion in the city. The former Jenners department store will include a 90 room hotel, restaurants and retail. Also coming is the first of two planned hotels for the Clayton brand. Clayton Hotel St Andrew Square will have 172 rooms, and will be operated by Scandic Hotels.
2027 will also see the completion of a transformation of one of the city’s landmark hotels, the Caledonian. Owner Henderson Park has invested substantially in the property, adding new rooms and carrying out a rolling refurbishment of the property. Previously a Waldorf Astoria hotel, today it operates as part of Hilton’s Curio Collection. Other brands coming to the city, with launches planned in 2028, are Sandman Hotels with a 240 room Sandman Signature hotel; and Dakota, with a planned office block conversion that will create a 143 room hotel.
