Real estate investment company Develop North PLC has completed £1.25m of boutique hotel funding in Edinburgh, turning a Georgian townhouse into a hotel and delivering a double-digit return on investment.
Develop North provided the boutique hotel funding to AM Number Three Ltd in March 2025, secured against 3 John’s Place in Leith. The borrower has since repaid the loan in full after refinancing through a long-term commercial mortgage.
The facility paid for the development and opening of the 16-bedroom hotel, which family-run Archibald Hotel Collection operates. The hotel welcomed its first guests in July 2025 and holds a rating of 9.6 out of 10 on Expedia.
“This investment helped the operator bring a historic building back into use as a hotel and establish a business that has been well received by its guests,” said Michelle Percy, chief executive officer of Develop North.
“The move to a long-term commercial mortgage marks an important milestone for the owners,” she added. “For Develop North, full repayment and a double-digit return demonstrate the value of supporting experienced operators with a clear plan for their development.”
Overlooking Leith Links, 3 John’s Place keeps the townhouse’s historic character alongside a contemporary interior and technology, including keyless entry and guest-controlled room settings.
The boutique hotel funding forms part of Develop North’s real estate lending portfolio. The company’s shareholder-approved strategy also covers commercial and residential real estate, with a main focus on the North East of England.
“As we grow our investment activity in the North East, we continue to manage our existing portfolio to deliver value for shareholders,” she noted. “Each opportunity is assessed for its commercial case, the risks involved and how it fits within the wider portfolio. Successful completions such as this provide capital for further investment.”
“Develop North’s funding and flexible approach helped us turn our plans for 3 John’s Place into a trading hotel,” said Caroline Claydon, director at Archibald Hotel Collection. “We have been pleased with the response from guests since opening, and moving to a long-term commercial mortgage is an important next step for the business.”
“We’re proud of what we have created in Leith and grateful for the support that helped us get here.”
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