TALKS are under way to open the first new hotel on Princes Street in more than 50 years.
Planning consultants are exploring the possibility of turning the upper floors of the property at 121-123 Princes Street into a 100-bedroom hotel, with womenswear firm New Look already signed up for the lower levels.
The store is currently occupi
ed by souvenir shop The Pride of Scotland, while its upper floors are empty. The building was bought by Belfast property group Deramore last year, with an annual lease of around £1.3 million.
Backers will present their plans to the city centre neighbourhood partnership at a meeting next week, as part of the ongoing debate on how to revive the street's flagging fortunes.
A "string of pearls" concept has been designed, under which Princes Street will be divided into sections, such as high street shopping, boutique stores, al fresco dining and a cultural quarter.
Councillor Tom Buchanan, the city's economic development leader, said today: "Plans to redevelop Princes Street are already generating a great deal of attention so I'm sure this proposal will also create interest.
"The string of pearls concept is all about maximising under-used spaces and encouraging co-ordinated, mixed-use development which will revitalise the heart of our city. This proposal fits in with this concept, and I would see premises such as this playing a crucial role in this regeneration."
Planning consultancy Turley Associates is leading the talks, and SMC Hugh Martin Architects are also on board.
Colin Smith, associate director at the Edinburgh office of Turley Associates, said: "The building currently has consent for offices, but we're now looking at a hotel as a potential alternative.
"Princes Street has attributes in terms of its views of the Castle, so it seems an appropriate use for the upper floors."
Retail and hotel expert Niall Macdonald, director of Jones Lang LaSalle, added: "It is no surprise that an alterative use is being considered as there is a significant demand for additional hotel beds in Edinburgh.
"I anticipate further development of the upper floors of buildings in Princes Street as much of this space is under-utilised."
But he added: "While any hotel in this location would boast stunning views towards the Old Town, vehicle access could pose a problem."
The last hotel to be built on Princes Street was the Mount Royal in 1955.
The full article contains 406 words and appears in Edinburgh Evening News newspaper.
