German budget hotel chain to launch in Edinburgh

Property developers Chris Stewart Group have acquired the former buildings of Edinburgh City Council’s Economic Development department on Market Street at which Motel One will open a £25m, 208-bedroom hotel.

The hotel will also feature 30,000sqft of residential space, including self catering apartments, six offices and two restaurants.

Motel One, which operates 32 hotels in Germany plus two currently being developed in Austria, plans to open its first UK property in summer 2012.

Chris Stewart, director of Chris Stewart Group, said the agreement with Motel One was key to securing the site.

“Edinburgh was high on their target list and although this site has been challenging for us due to its sensitive nature and historic context, we were sure it could provide Motel One with everything they were looking for,” he said. “I hope that Market Street is the first of many projects which we do with Motel One.”

Anne MacColl, chief executive of Scottish Development International, who helped broker the deal, said: “UK hotels continue to be the most occupied in Europe, with Edinburgh showing the highest occupancy in the UK outside of London. Motel One's decision to locate in Edinburgh reinforces the fact that Scotland presents significant opportunities for hotel development and this project will help to generate additional tourism revenue for Scotland from increased international visitors.”

Chris Stewart Group has also developed three other hotel sites in Edinburgh over the past few years, which are now occupied by Apex and Travelodge.