RETAIL giant Bhs is moving into the hotel business with a plan to transform the upper floors of its landmark Princes Street store.
The plans, which are said to be at a very early stage, are being drawn up as part of the council's "string of pearls" plan to revitalise Princes Street.
And if the hotel gets the go-ahead it is likely to feature some of the most sought-after rooms
in the city, with unrivalled views of Edinburgh Castle, Princes Street Gardens and the historic Old Town.
The building's owners, CPPL, along with Bhs have lodged the plans to renovate the top three floors – currently used for storage – with the city council.
While there is little detail available about the proposed hotel, which is likely to feature close to 100 rooms, it was confirmed that the site alone had already attracted the interest of a number of potential operators.
And despite the continuing global financial crisis, talks with one operator were said to be in advanced stages.
Steve Spray, director of Lasalle Investment Management who represent CPPL, said they hoped that the hotel would prove a success.
"This is something that is being brought forward with Bhs, as they wanted to find a way to make use of the upper floors of the building, as part of the string of pearls plan," he said.
"We have had interest from a number of operators, and we are currently in advanced negotiation with one potential operator.
"The plans are at an early stage but I think it is fair to say rooms in that hotel could prove incredibly popular, especially because of its location and the kind of views guests would have.
"We would not be demolishing any of the building, and this wouldn't have an impact on the Bhs store, which would remain open for business."
The "string of pearls" concept has been designed to revive Princes Street's flagging fortunes, by dividing it into sections, such as high street shopping, boutique stores, al fresco dining and a cultural quarter. Earlier this year it was revealed that the concept had led to talks to turn the upper floors of souvenir shop The Pride of Scotland into a 100-bed hotel, which would be the first new hotel to open on Princes Street since the Mount Royal in 1955.
Chris Wayne-Wills, secretary of the Edinburgh Principal Hotels Association and general manager of the Roxburgh Hotel, said there was certainly room in Edinburgh for new hotels.
"We would obviously support this, as it fits in with the city's broader aims of sustaining growth," he said.
"One of the big problems has been ensuring there are rooms available to meet the demands of conferences and events which take place in the city every year, and any new hotel would help with that."
No one from Bhs was available for comment.
The full article contains 489 words and appears in Edinburgh Evening News newspaper.
