Artisan Agrees Major Hotel Deal With Aparthotels Adagio

May 21, 2014

Artisan Agrees Major Hotel Deal to Drive Transformation of Edinburgh’s Historic Old Town Site

Artisan Real Estate Investors, the international development consortium behind the transformation of Edinburgh’s former Caltongate area, has agreed a major hotel deal with global operator Aparthotels Adagio.

Following planning approval for much of the commercial and leisure provision in January 2014, Artisan are now moving forward with the development of the £150 million site which will seamlessly link the capital’s New Street/East Market Street area and Waverley Station with the historic Royal Mile.

The new hotel deal will bring a 146-apartment Adagio Aparthotel to the seven-acre site, with frontages onto both the Royal Mile and the Canongate.

The design of the four-storey building will reflect its unique setting, being constructed behind an existing façade facing onto the Royal Mile and linking to the Canongate and a new public square using a newly created pedestrian walkway inspired by the Old Town’s historic “Wynds”.

The Aparthotel will form an integral part of the new £6.5 million civic square which forms the heart of the development – with ground level linkages to cafés, restaurants and shops.

Adagio’s innovative Aparthotel concept has been successfully rolled-out across Europe and is now being applied to some of the UK’s premier city-centre destinations. It is aimed primarily at long-stay visitors and provides hotel services, including fully-furnished studios and one / two-bedroom apartments, complete with kitchens and bathrooms, to provide high quality self-catering accommodation.

The Adagio deal follows another hotel agreement with Whitbread announced in December 2013 for a 127-room Premier Inn and a 130-room Hub by Premier Inn, Whitbread’s innovative new ‘compact’ hotel format which will be the first of its kind outside of London.

Welcoming the Adagio deal, Lukas Nakos, Artisan’s managing director said: “There has been huge interest in the site from hotel operators around the world, and I am pleased that an operator of Adagio’s stature and pedigree has chosen to invest in the city.

“High quality hotel provision will be the cornerstone of our development, and it’s great to see how innovative leisure concepts will add vibrancy, excitement and colour to our plans. We will be placing strong emphasis on the quality of design and materials to ensure the hotels reflect their historic Royal Mile setting – as well as ensuring that the wider area benefits from the increased visitor spend.”

Centred around a new £6.5 million civic square, Artisan’s new development will create around 16,500 sq metres of high quality Grade A office space and 28 new retail businesses, as well as the hotel and leisure space. There are also plans for a new community facility, together with 145 residential units and 40 affordable homes.

Latest research shows that the completed development will generate an approximate annual turnover for the area of £84 million, contributing some £43 million of Gross Value Added (GVA) to the local economy each year.*

 Commenting on the opening in Edinburgh, Vangelis Porikis, Aparthotels Adagio Director, Central & Northern Europe, said: “The Aparthotel Adagio offers an innovative solution for urban tourism and one we are particularly excited to launch in Edinburgh, a fantastic city of history, culture, business and thriving tourism.

“We are working hard with Artisan to ensure our new Aparthotel will be immersed in the history and culture of the city and gives our guests a base from which to enjoy this fantastic city and surrounding area.”

Artisan received detailed planning permission for the development in January 2014 and work on the development could start as soon as mid-2014.

Colliers International acted on behalf of Artisan Real Estate Investors for the hotel deal.