Interseve is acting as developer and contractor on the project and has done a deal with Whitbread which will take the building for its Premier Inn hotel operation. It will be on Torphichen Street and have 150 bedrooms.
It is Interserve’s third such deal with Premier Inn in the last 12 months.
Interserve executive director Dougie Sutherland said: “This is another fantastic development scheme in Edinburgh and sits comfortably with the Haymarket site that we are already developing. The scheme also reflects the successful partnership that we have built with Premier Inn and we are now developing two sites in Edinburgh and one in Newcastle for them. Interserve is now one of Premier Inn’s largest UK partners.”
Interserve has completed the purchase of the site and submitted a detailed planning application. Work is anticipated to start on site by early summer 2015.
Interserve has secured a full, forward-funding deal from Aberdeen Asset Management to purchase and fund the development on a turnkey basis for Premier Inn.