Mactaggart Family & Partners (MF&P) has exchanged contracts to purchase the latest location for Resident Hotels.

The property, the Resident Edinburgh, is due to open in 2024 after a full repositioning of the building.

The 166-room property will take the group’s UK portfolio up to six hotels and demonstrates Resident Hotels’ commitment to Scotland’s capital.

MF&P acquired the building from the development arm of Mapeley, which owns and manages one of the largest commercial portfolios in the UK.

The feuhold site, Meldrum House on Drumsheugh Gardens, was constructed in the 1960s as the Edinburgh office headquarters of Her Majesty’s Revenue & Customs.

William Laxton, chief investment officer of MF&P, said: “Edinburgh - and this micro location within it - is perfect for the Resident guest product and operating model and we are thrilled to be bringing our amazing team to this world class capital city.

“The acquisition and development adds to our momentum, having rebranded the group in early 2020.

“The transaction also demonstrates our belief in the operating model, at a time we begin the implementation of our ambitions to grow Resident Hotels as an operator of third party owned hotels.”

The new hotel is designed by leading Scottish Architects Michael Laird and Associates, who were appointed by the vendors Mapeley/Cannon Capital to use the structural core of the building to create an elegant property befitting the prime location.

Planning permission was secured in November and the transaction represents the conclusion of Mapeley/Cannon Capital’s strategy to repurpose what many in the city have come to regard as an eyesore.

David Orr, chief executive of Resident Hotels, who is from Edinburgh and has been responsible for creating over 3,000 hotel rooms across the UK and Europe, said: “Edinburgh is perfect for the Resident brand, being rich in arts and culture, education and entrepreneurial businesses attracting a wide range of both domestic and international visitors, eager to immerse themselves in the city.

“We want people to stay in genuinely interesting places and we hope that by creating welcoming, well-designed hotels with highly-engaged team who know their neighbourhoods, we can play a role in those communities while creating a wonderful guest experience.”