July 4, 2023HENDERSON PARK ACQUIRES EDINBURGH’S ICONIC CALEDONIAN HOTEL
London, 3 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.
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.”
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