Edinburgh in line for another luxury hotel as former car rental site hits market

The central location is subject to planning permission, but could be transformed into a 51-bedroom apartment hotel.

How the former car rental office at 10 Picardy Place in Edinburgh city centre would look converted into a hotel.

Edinburgh could be set for yet another luxury hotel after developers raised the “for sale” sign on a former city centre car rental office.

Commercial property advisor CBRE is marketing 10 Picardy Place for sale, subject to planning permission, to transform it into a 51-bedroom apartment hotel. Formerly a Hertz car rental location, the new hotel would comprise ensuite rooms, a courtyard area and reception.

Chris Dougray, executive director at CBRE, said: “This is a rare chance to secure a consented freehold site in one of the best locations in Edinburgh, one of Europe’s most sought after tourist destinations. It’s a fantastic opportunity for a hotelier or hotel group to transform an empty building dating back to the 1800s into a beautiful hotel and revive the historic Georgian frontage, which would not only add to the visual appeal of the area, but also create new jobs and attract tourists.”

He added: “Edinburgh is one of the UK’s strongest performing hotel markets, attracting 1.8 million overnight stays in 2022, with strong growth in the average daily rate (ADR) achieved in the last 24 months.”

Dougray said a decision on planning permission will be made by Edinburgh City Council before the summer.

CBRE described Picardy Place as “ideally situated for visitors to the capital” being less than a five-minute walk from Princes Street, George Street and Queen Street. A recent report noted that Scottish hotels held “enduring appeal” for investors after transaction volumes nearly doubled last year. Overall, Scotland accounted for 14 per cent of UK hotel deals in 2023.