Private real estate investment fund manager Henderson Park, together with its in-house hospitality operator and asset manager, Klarent Hospitality – which acquired the hotel, affectionately known as ‘The Caley’, in July 2023 – plan to invest over £35 million on improvements of the infrastructure, bedroom refurbishment as well as upgrading and restoring the public areas to enhance the guest and visitor experience.

Plans include expanding room capacity to over 300 by early 2026, making it one of Edinburgh’s largest hotels.

The flagship Edinburgh hotel will also become part of Curio Collection by Hilton this summer, joining a global portfolio of lifestyle hotels. Curio Collection by Hilton hotels are handpicked for their individuality and character and are designed to reflect the unique spirit of the cities they call home.

The Caledonian was constructed from 1899 to 1908 and was originally owned by the Caledonian Railway Company, where the hotel takes its name. The new bedroom and suite concepts are inspired by the crests of the historic capital cities of Edinburgh, Stirling and Inverness. The original stained-glass windows will continue to stand proud at the head of the grand staircase showcasing the crests of destinations the former railway station used to serve.

Klarent Hospitality, led by chairman John Brennan and chief executive Peter Stack, employs over 60 people at its head office in Glasgow and manages a portfolio of Henderson Park-owned hotels across the UK and Europe, including five Hilton Hotels across the Central Belt of Scotland.

Christophe Kuhbier, managing director at Henderson Park, said: “Our continued investment in The Caledonian is testament to our stewardship of this iconic hotel, which has been a bastion of Edinburgh hospitality over a century.

“We look forward to working with Hilton and Klarent, our specialist hospitality operator and asset manager, to unlock The Caledonian’s full value potential on behalf of our investors and ensure it continues to enchant guests for many years to come.”

Mr Stack added: “As custodians of this landmark hotel, we have committed to the significant investment and transformation that will see The Caledonian as a world-renowned, leading hotel at the heart of Edinburgh.

“We are delighted to celebrate the hotel’s 120th anniversary and look forward to working with the hotel team creating the next chapter for The Caley.”

Stephen Cassidy, SVP and managing director, UK&I, Hilton, said: “The Caledonian has long been one of the top destination hotels in Scotland – loved by guests from all over the world and Edinburgh residents alike.

“The hotel is a hugely important member of the Hilton portfolio, and this exciting rebrand empowers its exceptional team to elevate the rich storytelling opportunities and continue to celebrate the hotel’s heritage.”