Resident Hotels secures The Resident Edinburgh Mactaggart Family & Partners (“MF&P”) has exchanged contracts to purchase the latest location and project for Resident Hotels, The Resident Edinburgh, which is due to open in 2024 after a full repositioning of the building.

The 166-room property will take the group’s UK portfolio up to six hotels and demonstrates Resident Hotels’ commitment to Scotland’s capital.

MF&P acquired the building from the development arm of Mapeley, which owns and manages one of the largest commercial portfolios in the UK.

The feuhold site, Meldrum House on Drumsheugh Gardens, was constructed in the 1960s as the Edinburgh office headquarters of Her Majesty’s Revenue & Customs.

William Laxton, CIO of MF&P, said: “Edinburgh – and this micro location within it – is perfect for The Resident guest product and operating model and we are thrilled to be bringing our amazing team to this world class capital city.

“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 new hotel is designed by leading Scottish Architects Michael Laird and Associates, who were appointed by the vendors Mapeley/Cannon Capital to use the structural core of the building to create an elegant property befitting the prime location. Planning permission was secured in November 2020 and the transaction represents the conclusion of Mapeley/Cannon Capital’s strategy to repurpose what many in the city have come to regard as an eyesore.

Resident Hotels will operate The Resident Edinburgh under a management contract, marking its first launch since The Resident Covent Garden, which opened in February 2019 and is currently the No1 hotel in London on TripAdvisor.

Resident Hotels specialises in reflecting the best of its local communities, through design and great service and will be drawing on Scotland’s heritage to create a destination it hopes will be an asset to the city.

The Resident brand encourages guests to explore the neighbourhoods in which it is situated and with this latest opening, will be partnering with local bars and restaurants to showcase the expertise of the local epicurean artisans for which Edinburgh is renowned.

The hotel does not feature traditional F&B, but instead offers guests table service in its lounge, as well as in-room service, giving guests the choice on where and when they eat and creating a relaxed, home-from-home experience away from that of traditional hotel bars and restaurants.

David Orr, CEO, Resident Hotels, who is from Edinburgh and has been responsible for creating over 3,000 hotel rooms across the UK and Europe, said: “Edinburgh is perfect for The Resident brand, being rich in arts and culture, education and entrepreneurial businesses attracting a wide range of both domestic and international visitors, eager to immerse themselves in the city.

“We want people to stay in genuinely interesting places and we hope that by creating welcoming, well-designed hotels with highly-engaged teams who know their neighbourhoods, we can play a role in those communities while creating a wonderful guest experience.”

Resident Hotels currently offers 379 rooms across five city-centre hotels. As well as further owned and operated hotels, this transaction comes in a phase of expansion which includes plans to grow rooms under management via management contracts, with a total target of 1,500 to 2,000 rooms over the next seven years.

Cannon Capital were advised by JLL.