Image credit: Yotel Edinburgh

In a significant real estate transaction, Millemont Capital Partners, a prominent UK private equity firm, has successfully acquired Yotel Edinburgh from Starwood Capital Group. The deal underscores Millemont’s strategic expansion in the hospitality sector, particularly in key urban locations.

Yotel Edinburgh, a 276-room hotel located in the heart of Edinburgh’s New Town, opened its doors in 2019 following an impressive transformation from a commercial office building into a modern, innovative hotel. The hotel has since become a notable establishment, blending cutting-edge technology with sleek design to cater to both business and leisure travellers.

The acquisition was facilitated by a team of esteemed advisors and legal experts. Millemont Capital Partners received advisory services from CMS and RSM, ensuring a smooth and efficient transaction process. On the other side, Starwood Capital Group was represented by JLL and Paul Hastings, who managed the sale with their extensive market expertise. Yotel’s interests were safeguarded by the legal firm Taylor Wessing, ensuring the brand’s continued commitment to its unique hospitality experience under new ownership.

Ashley Shaw, chief executive and co-founder of Millemont, said: “The investment marks another strategic acquisition by Millemont and our fifth hotel transaction since 2022.

“Edinburgh is one of the best-performing hotel markets in Europe, and we are delighted to increase our presence in this thriving market. This acquisition allows us to continue the growth of our hotel portfolio with one of the largest hotels in the city.”

Kerr Young, head of UK national hotels transactions at JLL, added: “We are delighted to have advised Starwood Capital on this transaction. Our client had previously developed a redundant former office to a modern hotel concept and have now successfully sold their interest in the property, subject to the Yotel branding. We have closed in excess of £100m of hotel transactions in Edinburgh during 2024, yet further evidence of the strong underlying fundamentals of the market.”

This acquisition marks a notable milestone for Millemont Capital Partners as they continue to diversify their holdings in the hospitality industry. It also reflects the ongoing interest and investment in Edinburgh’s vibrant tourism market, which has been recovering robustly post-pandemic.