Edinburgh West End hotel sold after attracting ‘considerable investor interest’

Property firm Knight Frank has sealed the sale of an Edinburgh Georgian townhouse hotel in excess of its guide price to an international investor.

The firm said the West End hotel - B+B Edinburgh - had attracted “very strong interest” after being put up for sale by its former owners.

The hotel comprises 27 luxury en-suite bedrooms, a restaurant, bar, 24/7 reception, a library lounge area and two event meeting spaces. Pricing and ownership details have not been disclosed.

The B+B Edinburgh hotel on Rothesay Terrace, Edinburgh.

Last year, hotels emerged as Scotland’s top performing area of property investment in the first half of 2025 as the overall market “paused for thought” amid geopolitical tensions and a changing policy backdrop.

Ryan Lynn, a partner at Knight Frank, said: “B+B Edinburgh presented an excellent opportunity to acquire a premium boutique hotel in a highly sought after location. The asset generated considerable investor interest on account of its consistently strong trading performance and proximity to popular commercial and cultural destinations, including Edinburgh Castle, the Edinburgh International Conference Centre and Princes Street.

“We are delighted to have swiftly completed the sale above guide price, reflecting the property’s clear appeal as one of Edinburgh’s most charming and best-situated boutique hotels.”

Scotland’s commercial property market attracted some £750 million of investment in the first half of 2025. Hotels were found to be the top-performing asset class, with £213m of investment.

That was the second highest figure for the sector during the first six months of the year since 2020, behind only 2024’s £235m.