Waldorf Astoria The Caledonian Hotel in shadow of Edinburgh Castle sold in £85m deal

A historic Edinburgh hotel which has welcomed a host of famous guests including US presidents, royalty and Hollywood stars has been sold.

The landmark Waldorf Astoria Edinburgh – The Caledonian has been acquired by a property investment manager and hotel operator in a deal understood to be worth £85m.

The five star 120-year-old hotel is located at the west end of Princes Street in the shadow of Edinburgh Castle.

Henderson Park and Klarent Hospitality purchased the category A listed building, known as The Caley, from Twenty14 Holdings.

The iconic red sandstone hotel was originally owned by the Caledonian Railway Company and constructed from 1899 to 1903.

Famous former guests who have stayed in some of the 241 rooms have included the late Queen Elizabeth II and former U.S. President Barack Obama, as well as Hollywood legends Laurel and Hardy, Judy Garland, Charlie Chaplin and Sean Connery.

The previous owners, Twenty14 Holdings bought the hotel from Hilton in 2018, in a deal also worth £85m, with Hilton remaining the operator.

It 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 in November 2021.

New owners, Henderson Park and Klarent Hospitality, said that they 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.

Nick Weber, CEO and founder of Henderson Park said: “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.”