Smart City hostel in Edinburgh set to sell for £14.9m

19 August 2015 by
Smart City hostel in Edinburgh set to sell for £14.9m

The 615-bed Smart City hostel in Edinburgh, which has been operated by Starboard Hotels since 2009, is to be sold to Safestay for £14.9m.

The deal will be part of a planned disposal by owners Blackfriars Property with completion expected next month.

The hostel, located off the Royal Mile, was rescued from administration in 2009. It operates as a hybrid-student/hostel model which sees some rooms leased to Edinburgh University as single-use accommodation during term time.

In the peak summer season, it is converted into multi-bed rooms and can house up to 615 people.

Paul Callingham, managing director of Starboard Hotels, said: "We are thrilled to have been part of the success of this great business and to have assisted in this strategic sale, returning excellent value for our partners.

"The business will be in safe hands, being operated by the current team, headed by general manager Ruth Kerr, who has been with the business for nearly eight years."

He added: "Having purchased seven hotels this year, we are keen to focus on our multi-branded portfolio of over 800 hotel bedrooms and the sale of Smart City puts us in a strong position to push forward with further acquisition plans in the UK of branded and unbranded hotels."

Savills has acted for and advised Blackfriars on the sale.

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