A hotel situated on Edinburgh's Royal Mile has been sold to investors, it has been confirmed.

The price has not been disclosed, but it is said to be the largest hotel transaction in Scotland since 2007. It was sold to a German investor, while Manchester's Park Inn by Radisson, which was marketed for sale with the Radisson Blu Hotel, was sold to UK investor The Ability Group.

The four-star hotel in Edinburgh is located within the historic old town, a UNESCO World Heritage site, and consists of 238 bedrooms, a restaurant, bar, conference rooms and leisure facilities. In addition, a youth hostel and retail unit, plus a site to the rear with significant development potential was also included in the sale.

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CBRE and JLL were appointed to dispose of the Radisson Blu Hotel and Park Inn by Radisson earlier this year. They were brought to the market with asking prices of £59m and £20m, respectively.

Kerr Young, Director of Hotels and Hospitality for JLL, said: "The Radisson Blu in Edinburgh offers not only a secure income stream with great covenant strength, but also prime real estate in Scotland's historic capital – one of the most sought after hotel markets in Europe.

"Since the hotel went up for sale, alongside the Park Inn by Radisson in Manchester, we have received a huge amount of interest, underlining the appetite from investors in today's market."

Paul Collins, of CBRE Hotels, added: "The hotels are fantastic assets for WestInvest and The Ability Group, and we are certain that the current buoyant investment market will continue into 2015 as disappointed investors seek alternative opportunities."

(JP/MH)