Previously owned by Twenty14 Holdings, an arm of Abu Dhabi-based LuLu Group International, the deal marks the third Edinburgh hotel under Henderson Park and Klarent’s Hilton portfolio, joining The Carlton on North Bridge and the DoubleTree Edinburgh Airport, both bought in November 2021.

Located at the west end of Princes Street, the iconic Caledonian Waldorf Astoria, fondly referred to as ‘The Caley’, is housed in a listed building with a distinctive red sandstone facade. Boasting 241 rooms, the establishment has hosted a range of eminent guests over its long history, including the late Queen, former US President Barack Obama, and an array of Hollywood stars such as Laurel and Hardy, Judy Garland, Charlie Chaplin, and Sean Connery.

The investment groups plan to undertake several enhancements to improve guest experiences and increase the hotel’s value. These improvements include room renovations and upgrades to the public areas and facilities. Since its launch in 2016, London-based Henderson Park has invested $14 billion (£11bn) in European property, including offices and student housing.

Nick Weber, chief executive 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 custodian soft his 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.”

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 UK.

“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.”