Launching under the brewer and bar group’s DogHouse brand, the hotel will reportedly be located in a former school opposite the city council headquarters on Market Street.
Announcing the news on Twitter at the weekend, BrewDog co-founder James Watt said BrewDog DogHouse Edinburgh would be "an amazing beer hotel and bar in the heart of Scotland's capital".
"Expect beer on tap in all the rooms, mini-bars filled with the best beers in the planet and fridges in the shower for shower beers. Opens Q3 2021."
BrewDog currently operates two hotel brands – DogHouse and Kennels – across three sites globally.
In Columbus, in the US state of Ohio, the company operates both a DogHouse hotel and a BrewDog Kennels, the latter of which is described as a city centre mini-hotel concept located above a BrewDog bar.
It also operates a second Kennels site in Aberdeen.
This summer the group is set to launch its first DogHouse hotel in England in Manchester.
The hotel will have 18 rooms; two bars - one on the ground floor with 30 taps of outstanding beers, and a second, hidden amongst the ‘urban rooftop jungle’ with 10 taps of craft beer; and a taco bar.
At its recent annual general meeting the group also set out plans for further bar expansion, with several new openings slated.
New sites in the UK include Ealing, Plymouth and Exeter, with further sites pencilled to open in Las Vegas, Atlanta and Milan.
It also announced it was looking for a brewery in France to support further European expansion and distribution, alongside a tap room and bar space slated to open in South Africa.