Hilton Hotels Corporation has put Edinburgh landmark the Caledonian Hotel on the market for £50m

The historic hotel, located on Princes Street, was acquired by Hilton Hotels earlier this year after the company completed its £3.3bn takeover of Hilton International.

CB Richard Ellis Hotels has been appointed to sell the 251-bedroom property.

It is understood that the vendor favours a sale-and-leaseback deal rather than a conventional property sale as Hilton hopes to remain in occupation.

Proceeds from the sale will be used by Hilton Hotels to reduce company debt.

The Royal Bank of Scotland and Scottish retail and property entrepreneur Sir Tim Hunter have been identified as early possible bidders for the landmark hotel.