Edinburgh Park Novotel bought out of administration

Two private investment firms have bought the 170-bedroom Novotel Edinburgh Park out of administration.

Benson Elliot Capital Management and Algonquin have jointly bought the property from administrators KPMG.

The hotel was put on the market late last year following the administration of owner EBH.

Following six acquisitions in the past 18 months, the Novotel Edinburgh Park will become the 23rd hotel in Algonquin's portfolio and is its first investment in the United Kingdom.

Novotel Edinburgh Park opened in mid-2008and comprises 170 rooms, a restaurant, meeting rooms and a leisure facility (including a swimming pool). It is the only hotel situated within Edinburgh Park, which 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.

Accor will continue to manage the hotel under the Novotel brand.

Trish Barrigan, Senior Partner at Benson Elliot, commented: "The global recession and subsequent property market decline have created the opportunity to buy hotels at meaningful discounts to replacement cost and, we believe, at or near the bottom of the operational cycle. We're actively looking at similar opportunities that represent good value today, but where there is also scope to add value through targeted capex spending and proactive management strategies."

The acquisition was financed by Barclays Corporate.

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By Neil Gerrard

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