Dunstane Houses hotel sold off guide price of £7.5m

The Dunstane Houses boutique hotel in Edinburgh has been sold to Indian-owned Roseate Hotels off a guide price of £7.5m.

The property dates from around 1851 and features a bar, restaurant, lounge, conservatory, private gardens and 35 bedrooms and suites set across two villas.

Roseate Hotels operates three hotels in New Delhi and Rishikesh in India and Roseate-branded properties in London, Reading and Bath in the UK.

Steven Fyfe, associate director in the Hotels agency team at Savills Scotland, said: "The Dunstane Houses is a prime investment opportunity that presented a luxury boutique hotel recognised as one of the finest in Edinburgh with significant potential for ongoing success."

Savills said it had undertaken some £25m worth of hotel transactions in Edinburgh this year.

Fyfe added: "Edinburgh continues to outperform as a tourist and business destination that maintains a buoyant hotels market and we expect these robust fundamentals to support further transactions.

"Furthermore, the recent openings of the Gleneagles Townhouse and Virgin Hotel, as well as the upcoming entrants of the W Hotel & Roomzzz at St James Quarter, Red Carnation will bolster the city's hotels product and broaden the appeal of the city to travellers.

"However, against wider uncertainties in the investment market, it is essential to take advice at an early stage, whether considering an exit or further acquisitions for your portfolio. Live sales are generating strong interest, but price the of debt will challenge higher lot sizes."