The 130-bedroom Hub by Premier Inn and the 127-bedroom Premier Inn will form 'an integral part' of the overall development, which links the East Market Street area and Waverley Station with the historic Royal Mile and will include a pedestrian-friendly centre offering restaurants, retail outlets and leisure offerings, said development company Artisan Real Estate Investors.
Lukas Nakos, Artisan’s managing director, who worked with Colliers International to broker the hotel deal, said: “There has been huge interest in the site from hotel operators around the world, and I am pleased that an operator of Whitbread’s stature and pedigree has chosen to significantly invest in the city.
“High quality hotel provision will be the cornerstone of our development, and it’s great to see how innovative leisure concepts such as the Hub will add vibrancy, excitement and colour to our plans. We will be placing strong emphasis on the quality of design and materials to ensure both hotels reflect their historic Royal Mile setting – as well as ensuring that the wider area benefits from the increased visitor spend.”
John Bates, head of acquisitions for UK & Ireland at Whitbread, said the development would allow further growth for the company in Scotland.
"This is another outstanding deal for Premier Inn. It gives us more than 257 new bedrooms in central Edinburgh and also our first new Hub by Premier Inn outside London," he said.
“We are now set to have two great Premier Inn products side-by-side in a superb new development in the heart of the Old Town - and close to Waverley Station. It is more exciting growth for us in Scotland and another big result for our customers."
Work is expected to start on the development next year following a committee hearing next January to discuss the planning application submitted by Artisan in August.
The company's proposed development, which is centred around a new £6.5m civic square, will create around 16,500 sq. metres of office space and 28 new retail businesses, as well as the hotel and leisure space. There are also plans for a new community facility, together with 145 residential units and 40 affordable homes with the completed development expected to generate an annual turnover of £84m.