Rooms with a stunning view … first new Princes Street hotel for over 50 years

THE first major development in more than five years on Edinburgh's main thoroughfare was unveiled yesterday.

A 100-bedroom "boutique" hotel and a new department store are planned for a glass-fronted development at 121-123 Princes Street.

The Hugh Martin Partnership, architects for Glasgow's award-winning Princes Mall shopping centre, have been drafted in to design the building.

The hotel – which would be the first to open on Princes Street for more than 50 years – will have a bar and restaurant overlooking West Princes Street Gardens and a large rooftop garden.

New Look has already agreed to open a three-storey department store on the site, subject to planning permission.

The new scheme is the first to emerge on Princes Street since the city council stepped up efforts to encourage development through its controversial "string of pearls" initiative. The last hotel to be built on Princes Street was the Mount Royal in 1955.

The last major development to get the go-ahead on Princes Street, in 2002, saw the former Burberry and C&A department stores knocked down and replaced by a building, unveiled in 2005, which is now home to shops and offices.

Belfast-based developer, the Deramore Property Group, yesterday lodged a planning application for the scheme after months of talks with council officials and heritage groups.

Deramore's £40 million scheme is being created on the site of two B-listed buildings, one of which is to be demolished while the other will have all but its Georgian facade removed.

They have lain all but empty for more than five years other than to house temporary "tartan tat" shops.

Darren Lonega, spokesman for Deramore, said: "We've sought inspiration from other world class cities and consulted widely within Edinburgh during the development of our proposals.

"We believe this scheme will deliver a sensitive and sustainable solution for these historic buildings to contribute far more positively to the vibrancy of Scotland's premier street."

Jonathan Guthrie, director of the council's city centre partnership, said: "We're working closely with Deramore on 121-123 Princes Street, and exploring other opportunities with investors, to ensure that we take positive steps toward enhancing the retail sector in Princes Street with better public spaces and access to the buildings."

It is understood Deramore hopes to start work on site within the next 18 months, although much will depend on the response to the company's plans by the capital's heritage groups.

Plans for the development which led to the demolition of the Burberry and C&A stores were first unveiled in 2000. But the scheme was dogged by delays and protests from heritage groups and was only given the go-ahead in the summer of 2002 after Historic withdrew a formal objection.

Graham Birse, deputy chief executive of Edinburgh Chamber of Commerce, said: "It is crucial that investor confidence is maintained and that Princes Street is rejuvenated as quickly as possible to secure Edinburgh's future as an attractive and accessible retail and leisure destination."