The 157-bedroom compact hotel will open on Rose Street in late 2015, joining the city’s first hub hotel, planned for the Caltongate area of the city.
The new leasehold site is being developed by Old Mutual Property Fund, which is managed by CBRE Global Investors.
“This is an exciting project for us and we are delighted to be working in partnership with Whitbread as they continue to roll out their innovative ‘hub’ concept,” said CBRE portfolio manager, Alistair Fisher.
“With this partnership, we are able to modernise an existing building and change the use to fit in with the surrounding area, as it has evolved into a more leisure orientated destination.
Whitbread said its ‘hub’ brand was well suited to Edinburgh because the compact format is suitable for a wider range of city centre buildings, with 25 per cent lower building and operating costs compared to standard Premier Inn hotels.
Patrick Dempsey, managing director of Whitbread Hotels and Restaurants said: “As a city, Edinburgh ticks all the boxes as a perfect location for our ‘hub’ brand.
“It’s a popular tourist and business destination with strong demand for good value, quality hotels. We believe ‘hub’ will prove to be a tremendous success, appealing to more price sensitive customers seeking quality accommodation in the centre of the city.”
Whitbread has been testing its hub concept with five prototype rooms in Premier Inn London King’s Cross, and has now planned seven hub hotels in London and Edinburgh, which will open ever the next two years.
The hotels will feature 11.4 sqm rooms designed to optimise space, and a deli-bar offering a variety of fresh food to be eaten in or taken away easily. The brand has its own app allowing customers to book and check-in online, as well as pre-setting room temperature, light settings and TV/radio before arrival.