Caledonian Hilton sold for £50m-plus

10 August 2007 by
Caledonian Hilton sold for £50m-plus

Hilton Hotels Corporation has sold its landmark property in Edinburgh, the five-star Caledonian Hilton, in a deal worth more than £50m.

The company completed the sale of the 251-room hotel, which was put on the market last October, to a consortium of Israeli investors called the Caledonian Operating Company for £51.7m.

The deal comes a day after the Royal Bank of Scotland was reportedly forced to postpone the sale of a £1.1b package of 15 Hilton hotels, including the Waldorf Hilton and Cumberland hotels in London, for the second time in two months.

The sale of the 104-year-old Caledonian Hilton, which is located in the heart of Edinburgh, forms part of Hilton's ongoing strategy to reduce the number of directly-owned hotels it has across the globe.

The group will retain long-term management contract for the property and the new owner has agreed to an investment programme of £13.5m to maintain the amenities and service in the Grade II listed building.

The Caledonian Hilton hotel was recently defrauded of more than £100,000 by an accounts department employee.

Janet Davis, 48, a paymaster at the hotel admitted a series of embezzlement charges when she appeared before Edinburgh Sheriff Court March this year. The court heard that she created ten fake staff positions at the hotel and then paid their wages into her own account.

Property agent CBRE Hotels advised Hilton throughout the sale process

£45m bid for Edinburgh's "Cally" hotel >>

Edinburgh hotel defrauded of more than £100,000 >>

By Kerstin Kühn

E-mail your comments to Kerstin Kühn]( Caledonian sold for £50m-plus) here.

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