Resident Hotels is set to open its sixth property following the transformation of a 1960s office building in Edinburgh into a 166-bedroom hotel.
Mactaggat Family & Partners (MF&P), the owner of Resident Hotels, has exchanged contracts to acquire Meldrum House, the former headquarters of Her Majesty's Revenue & Customs on Drumsheugh Gardens.
Expected to open in 2024, the newly renovated hotel will join sister properties in London (four) and Liverpool.
The building is being bought from the development arm of Mapeley, while the design for the hotel has been undertaken by architects Michael Laird and Associate with the aim of repurposing what many in the city regard "an eyesore".
Resident Hotels will operate the Resident Edinburgh under a management contract, marking its first launch since the opening of its property in Covent Garden in February 2019.
William Laxton, chief investment officer of MF&P, described the location as "perfect" for Resident guests and the brand's operating model.
"The acquisition and development adds to our momentum, having rebranded the group in early 2020 and achieved exceptional guest feedback through TripAdvisor.
"The transaction also demonstrates our belief in the operating model, at a time we begin the implementation of our ambitions to grow Resident Hotels as an operator of third party owned hotels."
The Resident brand, which was rebranded from Nadler Hotels 18 months ago, aims to offer "affordable luxury". It does not feature traditional F&B, but instead offers guests table service in its lounge, as well as in-room service, with the intention of creating a home-from-home experience that differs from traditional hotel bars and restaurants.
David Orr, chief executive, Resident Hotels, added: "We want people to stay in genuinely interesting places and we hope that by creating welcoming, well-designed hotels with highly-engaged team who know their neighbourhoods, we can play a role in those communities while creating a wonderful guest experience."
Resident Hotels, which currently has 379 rooms across its five hotels, aims to expand to a total of 1,500 to 2,000 rooms over the next seven years