£25m revamp for key Edinburgh hotel

L Marks one of largest investments in capital sector in recent times

opening in November. Principal was launched in November 2016 by private investment firm Starwood Capital Group after investment in the portfolio of about £150m. Its De Vere brand is scheduled to launch in September.

As for Scottish expansion, Willis noted that Principal has two properties in Glasgow, The Grand Central Hotel and Blythswood Square Hotel, which he said are “both trading very well under their independent identities”.

He added: “I think, like Edinburgh, they’re both very different propositions in terms of the market and the positioning, but we will look forward to bringing them into the plan in 2018.”

The firm has also earmarked The Principal Edinburgh Drumsheugh Gardens, the new name of The Bonham, to launch next year, along with sites in Leeds and Liverpool.

The Bonham deal helped boost Scotland’s hotel sector with investment of about £118m in the first half of this year, according to data which was published last month by Savills.

Other key investments in Edinburgh hotels include Waldorf Astoria’s £24m revamp of The Caledonian, while last year the Hilton Edinburgh Carlton reopened after a £17m refurbishment.