UK: Fund Manager Henderson Park acquires Edinburgh’s iconic Caledonian Hotel

Posted in News on 10 July, 2023

Henderson Park, the private real estate investment fund manager, together with its in house hospitality operator and asset manager, Klarent Hospitality, has acquired the landmark Waldorf Astoria Edinburgh – The Caledonian.

The iconic red sandstone façade

Completed in 1903, the five star 241-room hotel is a category A listed building* with an iconic red sandstone façade, which has been part of the social fabric of Edinburgh for over 120 years. The ‘Caley’, as the hotel is known locally, boasts a long list of famous former guests having hosted Her Majesty the late Queen Elizabeth II and former U.S. President Barack Obama, as well as Hollywood legends including Laurel and Hardy, Judy Garland, Charlie Chaplin and Sean Connery to name but a few.

The hotel, which takes its name from the Caledonian Railway Company, the original owners of the building, is strategically located on Princes Street, Edinburgh’s main retail street of the city, and offers views across the city. Located minutes away from Edinburgh’s two main train stations, it provides quick access to the city’s main tourist spots, such as Edinburgh Castle, and is just a few minutes’ walk both from the main business district and the Edinburgh International Conference Centre.

Henderson Park and Klarent Hospitality have identified a number of opportunities to invest in the hotel in order to both create value and improve the consumer experience, including room renovations as well as upgrading and restoring public areas and facilities.

This is the third Edinburgh hotel in Henderson Park’s Klarent Hilton portfolio, having purchased the Carlton on North Bridge, at the other end of Princes Street, and the Doubletree Edinburgh Airport as part of a 2,424 room / 12 hotel portfolio acquisition in November 2021.

Nick Weber, CEO and Founder of Henderson Park commented: “This transaction presents us with a rare opportunity to acquire an iconic hotel with an incredible 120 year heritage that is part of the very fabric of Edinburgh society. As custodians of this landmark property, we have a number of planned investments that will improve the guest and visitor experience and ensure the Caley retains its status as one of Edinburgh’s most emblematic hotels going forward.”

Premier King room with castle view

John Brennan, Chairman of Klarent Hospitality, added: “In the wake of Covid 19 Edinburgh has proven to be one of the most resilient real estate and hospitality markets in the U.K. Our Edinburgh Carlton hotel, for example, delivered significant revenue per room growth last year compared to 2019, which was driven by a quicker than expected recovery in overseas tourism and business travel and supported by continued strong domestic leisure demand. Our plans for The Caledonian will ensure that it remains well placed to capture this strong demand.”

JLL advised the seller on the transaction.

* A defined by Historic Environment Scotland

About Henderson Park
Henderson Park is a leading global private real estate fund manager headquartered in London. Since its formation in 2016, the firm has invested approximately $14 billion in building a portfolio of flagship real estate assets across Europe, with a presence in major cities and capitals in France, Germany, Greece, Ireland, Italy, Poland, Portugal, Spain and the UK. Henderson Park seeks high quality assets in prime locations where it can identify the potential for unlocking or creating value through asset management, or by taking on and working in complex situations. The company’s current portfolio is diversified across various sectors such as office, logistics, multifamily, student housing, hospitality and retail, including several real estate development projects. Henderson Park strives to work and build long-term strategic relationships with the best local partners.

Henderson Park is a signatory of the UN PRI.


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