A Swedish hospitality group has agreed to acquire the 146-room Adagio Aparthotel Edinburgh for £40.5m.
Pandox, which owns and leases hotels, revealed the total transaction value includes transfer tax and will be financed by cash and existing credit facilities.
It expects to contribute £2.2m in net operating income per year in a normalised market.
The hotel, located on the Royal Mile, has four additional small tenants and is being sold by MAS.
The property was built in 2016 as part of a city development project.
Liia Nõu, chief executive at Pandox, said: “Adagio Aparthotel Edinburgh is an attractive hotel property in an exciting segment in a dynamic city.
"The hotel is strategically located in one of the most attractive hotel markets in the UK, with well-diversified demand and very good revenue per available room levels.
"The acquisition provides exposure towards the extended stay segment, which we hope will grow over time as part of our portfolio.”
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