Owners Mactaggart Family & Partners (MF&P) announced last year that it was developing Meldrum House on Drumsheugh Gardens, converting the former HM Revenue and Customs office into a 166 bedroom Resident Hotel.
The latest £22m loan will reportedly enable Resident Hotels to complete the delivery of its new £50m The Resident Edinburgh, taking the group’s portfolio to six hotels including four in London and one in Liverpool.
Renovation works are now underway in Edinburgh, with an anticipated opening date of Q1 2024. The loan will go towards the extension and refurbishment of the building’s original structure to include additional floors, offering views of Edinburgh Castle and the rest of the city.
According to MF&P, redeveloping the existing site will save approximately 40% of embodied carbon emissions within the building and around 697 tonnes of carbon dioxide when compared with a new build.
The team is also exploring the extensive use of glass recycled from the original building, whilst already preserving other materials from the existing structure to recycle and repurpose in future schemes.
William Laxton, UK CEO at Mactaggart Family and Partners, said: “We are excited to bring The Resident brand to Edinburgh, a fantastic and bustling city that is the perfect location for our business model.
“This development represents a significant move for our business as we continue to implement our ambitions for modern luxury and sustainable builds as we grow Resident Hotels across the UK. We are extremely grateful for the faith NatWest has placed in the operating model and project, particularly at an uncertain time for the industry during Covid.”
Anthony Say, head of Hotels, NatWest Corporate Banking, said: “It is fantastic to see The Resident debut in Edinburgh after what has been an extremely challenging time for the whole hospitality sector.
“We are delighted to be supporting this high-quality hotel operator and brand which will further enhance the rich hospitality offering within this iconic city, with a focus on environmental development as well as contributing towards regeneration of an historic area. We look forward to continuing to support The Resident’s ambitions in the future.”