Hub by Premier Inn - Edinburgh_Property for Sale

58 Albany Street, Edinburgh, EH1 3QR, UK

Hub by Premier Inn - Edinburgh

Description

Edinburgh is Scotland's capital city, and one of the most dynamic and fastest growing cities in the UK.

The city receives 5.3 million tourist visits annually and is the most popular visitor destination in the UK, outside London.

Edinburgh stands as the best performing UK hotel market outside London, outperforming all major regional cities in terms of RevPAR.

The property is situated in the heart of Edinburgh's New Town, blending historic charm and contemporary urban appeal.

The existing property was developed in the 1980s on the site of a former church to provide offices arranged over lower ground, ground and three upper floors.

Detailed planning consent was granted on 12th September 2025 for the redevelopment of a 5-storey, 102-bedroom hotel, with licensed café and bar.

The proposal incorporates sustainability initiatives to minimise its climate impact and is targeting an industry-leading BREEAM rating of ‘Excellent’.

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Attributes

Asking price

$30,175,000

Cap rate

4.75%

NOI

$1,460,000

Planning Permission

Consented

Conversion

Hotel

Keys

102

Media

Investment highlights

Prime Hotel forward funding opportunity in a prominent Edinburgh City Centre Location.

The hotel is to be fully let to Premier Inn Ochre Ltd, and guaranteed by Whitbread Group PLC, an investment grade covenant.

Whitbread is the UK's largest hospitality business, long-term member of the FTSE100 and employer of over 38,000 people.

The property is subject to a signed AFL on Full Repairing and Insuring terms, with an initial rental income of £1,071,000 per annum, reflecting £10,500 per bed.

The lease will be for 30 years, without breaks, commencing on the date of Practical Completion.

The proposed rent will be subject to 5 yearly CPI linked rent reviews, compounded annually, subject to a collar and cap of 0%-4%.

We are instructed to seek offers in excess of £22,150,000 on a traditional forward funding basis, subject to contract and exclusive of VAT. A purchase at this level reflects a funding yield of 4.75% based on LBTT of 4.82% on the site price and 1.80% on the remainder.