Apple store, hotel and restaurant to give Edinburgh's economy a boost

THE Capital's economy is set to receive a triple boost with a European hotel firm set to clinch a site off the Royal Mile, technology giant Apple moving on to the city's main shopping street and an Italian restaurant chain also making its first move into Scotland.

Budget hotel operator Motel One, which has a string of 19 hotels across Germany and Austria, is lining up a deal to move into former council offices off the Royal Mile. It would become its first hotel outside Germany and Austria.

The Munich-based company, which is well-known in Germany for its turquoise design and stylish decor, is beginning a Europe-wide expansion and has lined up a move into former council economic development offices at Advocate's Close.

It is expected to spend up to 15 million creating a 200- bedroom hotel at the huge building, which extends down to Cockburn Street and is seen as a rare opportunity to build so close to the Royal Mile.

Apple, one of the world's most iconic brands, is also set to confirm a 4m-plus deal that will see it set up a shop on Princes Street.

Retail experts say the company is set to move into the first block at the east end of the street, which currently contains Burger King and is soon to undergo refurbishment.

Italian restaurant chain Strada, which has dozens of outlets in England, has clinched a first move into Scotland, taking on the former Bank of Scotland site on Castle Street.

Councillor Tom Buchanan, the city's economic development leader, said: "It is very encouraging that we still have such interest from hoteliers and retailers. It is also good that they will contribute to the wider mix of hotel and retail in the city centre.

"Hopefully we will see some deals coming through in the next four to six weeks."

Dutch "budget boutique" hotel operator Citizen M has also been linked with sites in the Capital, while Base2Stay is looking for an Edinburgh base for its apartment hotel brand.

Apple has remained tight-lipped about its move into Edinburgh but retail insiders say the company will soon confirm it has secured the high-profile site opposite the Balmoral Hotel.

Charles Guest, a partner at property firm Ryden, said: "Edinburgh is the biggest tourist centre in the UK after London so there is still a lot of demand from big-name operators to get representation here.

"They should get in while they can before the office and residential markets come back, because that will make it more expensive to get space here."

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