During Benson Elliot’s co-ownership of the Novotel Edinburgh Park, a series of proactive management strategies and asset management initiatives were deployed to deliver strong performance improvements to the business. These included new revenue and marketing programmes, and a capital expenditure programme centred on improving the bar and restaurant provision. The hotel is set to further benefit from the arrival of a tram line to the locality which opened in May 2014.
Marc-Olivier Assouline, Principal at Benson Elliot and Head of Hotels, said:
“We purchased this asset at what we believed to be the bottom of the operational cycle, following the global recession and market decline. Since then, our asset management initiatives, and external factors such as the arrival of the Edinburgh Trams, high profile events nearby (notably the Ryder Cup and Commonwealth Games), and a general upturn in the Scottish market have combined to deliver an exceptional improvement in the hotel’s performance. This was a timely moment to realise the value created for our investors, and to pass the asset on to a credible buyer with a strong investment track record.”
Trish Barrigan, Senior Partner at Benson Elliot, said:
“This transaction has been a great success for Benson Elliot and we’re pleased to have had the opportunity to work alongside Algonquin and use our combined hotel expertise and asset management capabilities to create a quality product. We look forward to continuing our relationship with Algonquin on similar opportunities across Europe.”
Jean-Philippe Chomette, Founder & CEO at Algonquin, said:
“With the sale of this hotel to a reputable owner, we successfully close a very exciting step in our European ventures – unlocking value in a solid asset which has been a great success for our teams. It also seals five years of excellent cooperation with our partner Benson Elliot, and we look forward to new opportunities to build our relationship further in the near future.”
Novotel Edinburgh Park opened in mid-2008, and was purpose built to meet the standards of the new generation 4-star Novotel brand. The hotel comprises 170 rooms, a restaurant, meeting rooms and a leisure facility (including a swimming pool). The hotel is set within Edinburgh Park, one of the UK’s premier office business parks. Edinburgh Park is located near Edinburgh Airport and the city bypass, and provides office accommodation to over 9,000 employees and many of the UK’s leading companies.
CBRE was the exclusive agent on the transaction.