Flagship hotel could breathe new Life into iconic Edinburgh square

A landmark former office building on the west side of St Andrew Square has been earmarked for the 103-room development after attempts to attract new occupiers drew a blank.

The former Scottish Life headquarters, which have been lying empty for three years, would become one of the most prestigious hotels to open since Italian fashion house Missoni opened a hotel on George IV Bridge in the Old Town two years ago.

The planning application for the site is being pursued by the property arm of Royal London, the UK’s biggest mutual life and pensions company, which bought Scottish Life 11 years ago.

It is hoped the venture – which would also feature a flagship cafe-bar – will revive interest in the square, which is blighted by a string of empty and neglected office buildings.

Agents were brought in to try to sell the eight-storey building after Scottish Life staff were relocated to other offices around the city, describing it as a rare and “unrivalled” opportunity to snap up an “iconic” building.

A spokesman for Royal London said: “We can confirm we have submitted a change of use application for 19 St Andrew Square for a hotel use… we’re unable to provide any more information at this stage.”

Peter Fraser, of Edinburgh-based planning agent DTZ, said: “Although there is a problem with a lack of choice of office developments in Edinburgh, the demand is just not there from occupiers. That’s not the case with the hotels sector, and that will be why Royal London are going down this road..”

Although an operator has not been confirmed for the St Andrew Square site, council chiefs are anxious to attract a high-quality development amid fears too many budget firms have been snapping up prime sites.

Budget operator Motel One has lined up two sites, on Cockburn Street and Princes Street, Premier Inn is working on a site on Princes Street and Ibis is pursuing a site on the Cowgate. Dutch operator Citizen M has also been linked with the capital.

Jim Lowrie, the city’s planning leader, said: “There is a feeling within the council that we … we want to attract a higher quality of operator, but we aren’t at the stage of introducing any kind of quota system. The other issue is that you don’t actually give planning permission for a certain standard of hotel.”

St Andrew Square has long been touted as a potential home for a flagship hotel since Harvey Nichols opened its doors in 2002, but previous schemes have failed to come to fruition.

Hearts owner Vladimir Romanov famously snapped up a former Royal Bank of Scotland building on the east side of St Andrew Square, but has failed to bring any plans forward for the site. The former Scottish Provident headquarters on the south side of the square have also been touted to potential operators, despite planning permission being secured for a mainly retail development before the credit crunch hit three years ago.