Work will start this month on a £45m development on the edge of Edinburgh’s Royal Mile to bring a new hotel-led, mixed use development to the Castlehill area of the city.
Multi-sector property developers, Chris Stewart Group, have announced that they have completed the purchase of a 140,000 sq ft site and have agreed terms with Motel One, one of Europe’s fastest growing hotel groups, to anchor the development by opening their first UK hotel in the Scottish capital next summer.
Motel One, a luxury budget operator which has 32 hotels in Germany and two in development in Austria, have agreed terms for a 208 bedroom hotel located in the former buildings of Edinburgh City Council’s Economic Development department on Market Street.
The £25m hotel will form the cornerstone of the development which already has planning consent and will include 30,000 sq ft of residential space including self catering apartments, plus six office premises comprising 10,000sq ft each, and two new restaurants. The development site which stretches from Market Street towards Advocates Close off the Royal Mile will take three years to complete.
Market Street will be the fourth major hotel development carried out by Chris Stewart Group in recent years. The company has successfully developed three other sites in Edinburgh City Centre, two on Waterloo Place now occupied by Apex Hotels and Travelodge, and one further site on Baxter’s Place which is due to move forward later this year.
