Private real estate investment fund manager Henderson Park has acquired the Waldorf Astoria Caledonian Hotel Edinburgh for a reported £85 million.

The five-star hotel in a category A listed building will be operated by Henderson Park’s in-house operator and asset manager Klarent Hospitality.

The hotel’s previous owner was Twenty14 Holdings (T14H), the hospitality investment arm of Abu Dhabi-based Lulu Group International.

The Caledonian is the third Edinburgh hotel in Henderson Park’s Klarent Hilton portfolio after the Carlton on North Bridge and the Doubletree Edinburgh Airport.

Henderson Park CEO and founder Nick Weber said: “This transaction presents us with a rare opportunity to acquire an iconic hotel with an incredible 120 year heritage that is part of the very fabric of Edinburgh society.

“As custodians of this landmark property, we have a number of planned investments that will improve the guest and visitor experience and ensure the Caley retains its status as one of Edinburgh’s most emblematic hotels going forward.”

Klarent Hospitality chairman John Brennan said: “In the wake of Covid 19 Edinburgh has proven to be one of the most resilient real estate and hospitality markets in the U.K.

“Our Edinburgh Carlton hotel, for example, delivered significant revenue per room growth last year compared to 2019, which was driven by a quicker than expected recovery in overseas tourism and business travel and supported by continued strong domestic leisure demand.

“Our plans for The Caledonian will ensure that it remains well placed to capture this strong demand.”