International group adds big city centre hotel to its Edinburgh Collection

PALM Holdings the international hotels business, has increased its investment in Edinburgh by acquiring another hotel in the city.

It has bought the Tune Hotel opposite Haymarket rail station from Singaporebased TP Real Estate Holdings for an undisclosed sum.

The deal shows Palm’s interest in Edinburgh, where it noted hoteliers benefit from demand from business and leisure customers.

The company already operates four hotels through the Edinburgh Collection. These include the five star Howard and four star Channings, which Palm bought in 2010.

Ricky Kapoor, managing director of the Edinburgh Collection, said it is now well placed to provide a variety of accommodation styles for those looking for luxury breaks and corporate and leisure visitors seeking “excellent value for money”.

The Tune hotels business was started in 2007 by Malaysia-based investors Tan Sri Tony Fernandes and Kamarudin Meranun to offer budget accommodation for business and leisure travellers.

It pioneered a “pay as you go” model for amenities ranging from air-conditioning to toiletries.

Opened in 2013, the 189-bed Haymarket Tune was the group’s first hotel in Scotland.

The hotel has been rebranded the Haymarket Hub and moved upmarket.

The Edinburgh Collection said it will feature superior quality beds, luxury toiletries and advanced communication technology.

Led by Sheetal Kapoor, Palm says it is the marketing umbrella for a number of family owned businesses that have been working together for over three generations.