IHL lands £17.7m hotel in Edinburgh
The high-quality asset experiences high occupancies throughout the year, especially during the Edinburgh and Fringe festivals in August, says CEO Jon Colley
Europe-focused hotel and leisure property investment vehicle International Hotel Properties Limited (IHL) has acquired a premium asset in Edinburgh, the UK’s second-strongest hospitality market after London.
On Monday, IHL completed the acquisition of the Holiday Inn Express Edinburgh City Centre for £17.725m plus costs.
"The acquisition marks IHL’s continued growth and investment into the European hotel sector and is the business’s ninth hotel purchase since August 2015. This property adds a further 161 hotel bedrooms and takes IHL’s portfolio to nine hotels with a total of 1,135 bedrooms," said CEO Jon Colley.
"This is a high-quality asset in the most stable hotel market in the UK, outside of London, and is an excellent addition to IHL’s growing portfolio," he said.
"The hotel consistently trades at a very high occupancy and is a mature, stable business having been open for over 12 years."
Colley said the hotel experienced high occupancies throughout the year, especially during the Edinburgh and Fringe festivals in August.
"Edinburgh is a corporate city during the week but it also has a strong transient leisure market," he said.
Chief financial officer David Hart said the acquisition was value accretive to IHL and would result in a positive boost to distributable earnings.
IHL listed on the JSE in 2015 as it looked to attract investors seeking sterling-denominated returns as they diversified away from local assets.