Millemont Capital completes the acquisition of the Yotel Edinburgh hotel

Millemont Capital Partners Limited ("Millemont"), a UK private equity platform, announced its latest investment, acquiring the YOTEL Edinburgh hotel from a controlled affiliate of Starwood Capital Group (“Starwood Capital”).

Located in Edinburgh’s New Town, the 276-room hotel opened in 2019, having been converted from an office to a hotel by Starwood Capital. As part of the acquisition, Millemont has exercised a pre-existing right to convert the Hotel Management Agreement with YOTEL to a Franchise and has appointed Troo Hospitality ("Troo") to operate the hotel on their behalf.

Ashley Shaw , CEO 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.

We plan to work closely with Troo Hospitality to continue to grow the operational performance of the hotel and capitalise on Edinburgh’s strong market fundamentals. Troo's innovative and guest-focused approach aligns perfectly with our vision for YOTEL Edinburgh, and we are confident that their expertise will drive further success under our ownership.

YOTEL as a brand is synonymous with smart design and technology-driven guest experiences, which resonates well with the modern traveller. We are excited to leverage YOTEL's brand strength and innovative spirit?by continuing to enhance the guest experience at YOTEL Edinburgh."

Kerr Young , Head of UK National Hotels Transactions, 仲量联行 , 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.

We wish Millemont and Troo Hospitality continued success for their latest acquisition.”?

Millemont Capital Partners Limited continues to expand its presence in the UK hospitality sector, focusing on strategic acquisitions that offer significant growth potential. The acquisition of YOTEL Edinburgh represents a key milestone in Millemont's ongoing strategy to develop a robust portfolio of high-performing assets in prime locations.

CMS provided legal services and RSM provided financial and tax advice and structuring services for Millemont on this acquisition.

仲量联行 and 普衡律师事务所 represented Starwood Capital. Taylor Wessing represented YOTEL.