Resident Hotels has secured its sixth location and will open a new site in Edinburgh in 2024.
Mactaggart Family & Partners have exchanged contracts to acquire the latest location for the Resident Hotels portfolio, purchasing 1960’s office building Meldrum House, previously home to HMS Revenue & Customs.
The building will be transformed into a 166-bedroom hotel with The Resident Edinburgh then opening in 2024.
William Laxton, CIO of MF&P, said: “Edinburgh – and this micro location within it – is perfect for The Resident guest product and operating model and we are thrilled to be bringing our amazing team to this world class capital city.
“The acquisition and development adds to our momentum, having rebranded the group in early 2020 and achieved exceptional guest feedback through TripAdvisor.
“The transaction also demonstrates our belief in the operating model, at a time we begin the implementation of our ambitions to grow Resident Hotels as an operator of third party owned hotels.”
The new hotel is designed by Scottish Architects Michael Laird and Associates, who were appointed by the vendors Mapeley/Cannon Capital.
Planning permission was secured in November 2020 and the transaction represents the conclusion of Mapeley/Cannon Capital’s strategy to repurpose what many in the city have come to regard as an eyesore.
Resident Hotels will operate The Resident Edinburgh under a management contract, marking its first launch since The Resident Covent Garden, which opened in February 2019.
The property will join three other hotels in London and one in Liverpool in the Resident portfolio.
David Orr, CEO, Resident Hotels said: “We want people to stay in genuinely interesting places and we hope that by creating welcoming, well-designed hotels with highly-engaged team who know their neighbourhoods, we can play a role in those communities while creating a wonderful guest experience.”
Resident Hotels currently offers 379 rooms across five city-centre hotels.
As well as further owned and operated hotels, this transaction comes in a phase of expansion which includes plans to grow rooms under management via management contracts, with a total target of 1,500 to 2,000 rooms over the next seven years.
Cannon Capital were advised by JLL.