Edinburgh aparthotel on the market for £8 million
The C-listed building in the New Waverley development, behind Edinburgh’s Royal Mile, has been converted into a 21-key aparthotel.
Now known as the Canongate, it was due to be operated by Apple Apartments, opening in 2017. Apple went in to liquidation in 2018.
A spokesman for the project’s architects Staran said: “Circumstances with Apple Apartments have changed so this opportunity is now being brought to the wider market.”
Knight Frank is marketing the building at the junction of Market Street on behalf of developer Edinburgh Castle Ltd, which is forecasting operating rooms revenue of £1.4 million per annum, representing a potential yield of 12.2 per cent after operation costs.
Contractor Redpath has carried out a full refit and the property is expected to be complete and ready to hand over to a new owner in June.
Neil Scott, partner at Knight Frank Edinburgh, said: “New Waverley has provided a significant boost to the city centre in Edinburgh – it has revitalised a once largely empty part of the city. The Canongate is an attractive opportunity for a hotel operator or investor to be part of what is fast-becoming one of the most successful regeneration schemes in the city, and even perhaps Scotland. Edinburgh is an increasingly popular destination for tourists and business travellers alike and, despite several new hotel developments in the city, occupancy rates remain high – last year they were around 83% in 2018. Projections for the development are robust.”
The 7.5-acre mixed-use New Waverley also features 160,000 square feet of office space, a range of leisure and retail opportunities and 148 residential apartments and penthouses. Tenants signed up to the development include HM Revenue and Customs, distiller Edinburgh Gin, and family-run café and bakery Loudon’s.
Jim Cummings, director at Edinburgh Castle, said: “Final renovation work at the schoolhouse site should coincide with completion of the office development phase at New Waverley. We’ve seen an increase in footfall as the regeneration takes shape, and with the new government office bringing 2,900 civil service jobs to the area, we can expect this to continue. The area is fast becoming an established district in the capital, creating an exciting community for visitors as well as those who live and work in Edinburgh’s historic city centre.”</p
