Millemont Capital Partners has acquired the Yotel Edinburgh hotel from an affiliate of Starwood Capital Group.
Located at 68-73 Queen Street, the 276-room hotel was previously an office building. Following a conversion project carried out by Starwood, the hotel began operations in 2019.
As part of the acquisition, Millemont has exercised a pre-existing right to convert the hotel management agreement with Yotel to a franchise and has appointed Troo Hospitality to operate the hotel on their behalf.
Millemont’s acquisition of Yotel Edinburgh is another step in its strategy to develop a portfolio of assets in prime locations in the UK.
CMS provided legal services and RSM provided financial and tax advice and structuring services for Millemont on the acquisition. JLL and Paul Hastings represented Starwood Capital. Taylor Wessing represented Yotel.
What they said
Ashley Shaw, CEO & co-founder of Millemont said: “The investment marks another strategic acquisition by Millemont and our fifth hotel transaction since 2022. Edinburgh is one of the best-performing hotel markets in Europe, and we are delighted to increase our presence in this thriving market. This acquisition allows us to continue the growth of our hotel portfolio with one of the largest hotels in the city.”
Kerr Young, head of UK national hotels transactions at JLL added: “We are delighted to have advised Starwood Capital on this transaction. Our client had previously developed a redundant former office to a modern hotel concept and have now successfully sold their interest in the property, subject to the Yotel branding. We have closed in excess of £100m of hotel transactions in Edinburgh during 2024, yet further evidence of the strong underlying fundamentals of the market. We wish Millemont and Troo Hospitality continued success for their latest acquisition.”