Five-star resort plan for former deaf school

The former Donaldson's School for the Deaf - once hailed by Queen Victoria as "finer than some of my Scottish palaces" - has been empty for more than two years since the school moved to Linlithgow.

Site owner Cala is understood to be on the brink of ditching its plans to build 135 luxury flats in and around the building, designed 150 years ago by Sir William Henry Playfair.

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The housebuilder today confirmed that the massive site is now attracting the interest of a number of top hotel brands.

If the school did become a hotel, it could be Edinburgh's biggest and grandest - set on 18 acres of land close to Haymarket station and a 15-minute journey to the airport when the tram line is completed.

Bosses at Cala say turning the site into a "destination resort" would bring extra facilities that would see it opened up to the public like never before.

Peter Darroch, executive vice president of hotel real estate firm Jones Lang LaSalle Hotels, said: "It would be a very good site and a phenomenal building.

"Hotel operators will have always had an interest in this property but, historically, residential values were much higher, which made things difficult. Now that has started to change.

"It would be a superb luxury five-star hotel if it stacked up in terms of funding."

Donaldson's School for the Deaf opened in 1850 with a 124,000 legacy left by city printer James Donaldson.

Donaldson's trustees agreed to sell off the site in 2003 for a fee believed to be in the region of 15 million.

Cala, which took possession of the school in 2008, planned to spend 80m transforming the school, with 63 flats to be created inside the existing building and a further 72 built behind in a new crescent-shaped building.

Industry sources say that Cala has come under pressure from its lenders to create value on the site, forcing it to look into a possible sale.

A spokesman for Cala said: "We have had interest in the Donaldson's site and its potential for development as a five-star destination resort. The nature of the Playfair building and its immediate environment could be attractive to a hotelier.

"The 18-acre site would enable additional facilities associated with the five-star destination resort concept. Any such proposal would massively raise the profile of Edinburgh's hotel offering and be a major showpiece in the city's drive to be recognised as a top European city destination."

Councillor Tom Buchanan, the city's economic development leader, said there remains a "large amount of interest" from top hotel operators in Edinburgh. Global names like Hyatt, Jumeirah and the InterContinental Hotel Group are said to have recently expressed an interest in the city.

THE RIVALS

The Balmoral: One of the city's best-known buildings, this five-star hotel features 188 rooms and is on the doorstep of Edinburgh Waverley Station. Notable guests have included Tom Hanks, Noel Gallagher, Beyonc and Sir Bob Geldof.

The Glasshouse: Behind the 150-year-old frontage of the Lady Glenorchy church, the five-star boutique hotel has 65 bedrooms, and has welcomed such names as Kylie Minogue, Annie Lennox and Meryl Streep.

The Scotsman: The former offices of The Scotsman and Evening News now house a five-star boutique hotel with 56 bedrooms, each containing their own Edinburgh Monopoly board game.

Caledonian Hilton: Opposite House of Fraser at the west end of Princes Street, this 251-bedroom hotel and is one of the best known in Edinburgh. Guests have included Nelson Mandela, Tony Blair and Sir Sean Connery.

Macdonald Roxburgh: Four-star hotel on Charlotte Square with 198 bedrooms pljus a gym, dance studio, spa, pool, sauna and steam room.

Macdonald Holyrood: A modern purpose-built building located next to the Scottish Parliament, this four-star hotel has 156 bedrooms.