Pandox expects the hotel to contribute approximately MGBP 2.2 in net operating income per year in a normalised market.

The transaction is made in form of the acquisition of assets and liabilities, including the property and an existing revenue-based lease with minimum guaranteed rent with a remaining term of 15 years.

The hotel, which is located on the city’s Royal Mile, has four additional small tenants. The seller is MAS PLC.

Liia Nõu, CEO of Pandox, said: “We are very pleased to acquire Adagio Aparthotel Edinburgh. It is an attractive hotel property in an exciting segment in a dynamic and expanding city.

“The hotel is strategically and centrally located in one of the most attractive hotel markets in the UK with well-diversified demand and very good RevPAR levels. The acquisition provides exposure towards the extended stay segment, which we hope will grow over time as part of our portfolio.”