18 April 2017
Reporter: Theo Andrew

M&G Real Estate buys Marriott hotel lease

M&G Real Estate has acquired the 150-year ground lease of a hotel in Edinburgh, for £23 million.

The 240 bedroom Marriott Courtyard hotel, located at Baxter’s Place, opened in 2016 after being developed by Chris Stewart Group.

Developed across three original Georgian townhouses, facilities include meeting rooms, a fitness centre and a modern extension to the rear.

It brings the total of Courtyard branded Marriott hotels, designed to target business travellers, to three in the UK.

Shailendra Shah, investment manager at M&G Real Estate, said: “With over four million visitors to Edinburgh each year, the city is one of the UK and Europe’s leading hotel markets, having consistently achieved one of the highest revenues per available room in the UK, surpassed only by London in 2015.”

She added: “This investment helps to meet the demand from institutional investors for long-term income with security that increases in line with inflation.”

Chris Stewart, CEO of Chris Stewart Group, said: “We are delighted to have agreed terms with M&G Real Estate for the ground lease of the Courtyard Edinburgh hotel and we look forward to working with them again in the future.”

M&G Real Estate were advised by Savills and Knight Frank advised the Chris Stewart Group.

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