Car & Van Hire will double the number of vehicles it offers at its airport unit, which will be kitted out under the Sixt brand.
Ian Lawrence, managing director of Sixt UK, had wanted to set up an agency in Edinburgh because of the capital's popularity as a tourist destination.
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Hide AdJohn Fraser, who owns Car & Van Hire, said: "With the strength of the euro against the pound – we're expecting a huge increase in visitors again this summer."