Starwood Capital sells Yotel Edinburgh

A UK private equity firm has acquired Yotel Edinburgh from a controlled affiliate of Starwood Capital Group, which owns brands such as 1 Hotels and Treehouse.

Millemont Capital Partners has taken over the 276-room hotel in Edinburgh’s New Town, which opened in 2019 following a conversion from an office to a hotel.

It comes amid the firm’s commitment to expansion in the UK hospitality sector through strategic acquisitions.

Troo Hospitality has been appointed to manage the property after Millemont secured a franchise agreement with Yotel.

Ashley Shaw, chief executive and co-founder of Millemont, said: “The investment marks another strategic acquisition by Millemont and our fifth hotel transaction since 2022.

“Edinburgh is one of the best-performing hotel markets in Europe, and we are delighted to increase our presence in this thriving market. This acquisition allows us to continue the growth of our hotel portfolio with one of the largest hotels in the city.”

Kerr Young, head of UK national hotels transactions at JLL, added: “We are delighted to have advised Starwood Capital on this transaction. Our client had previously developed a redundant former office to a modern hotel concept and have now successfully sold their interest in the property, subject to the Yotel branding. We have closed in excess of £100m of hotel transactions in Edinburgh during 2024, yet further evidence of the strong underlying fundamentals of the market.”

CMS and RSM advised Millemont, while JLL and Paul Hastings represented Starwood Capital. Yotel was represented by Taylor Wessing.

Further terms of the deal were not disclosed.