Haymarket hotel back on cards – but cut down to size

The Scotsman can reveal that the developers behind an earlier failed scheme for the Haymarket area are to produce a brand new blueprint for the site, which has lain empty for more than 40 years.

The controversial Edinburgh architect who masterminded the previous 250 million scheme and the global hotel giant that had a deal with the developer are both back on board.

The news brings an end to speculation that Irish developer Tiger was preparing to walk away from the site, three years after paying the council 41.5m for it.

However, it is virtually certain the firm will have to go through the entire planning process all over again, risking the prospect of a second public inquiry into its plans.

Details of the scheme are being kept under wraps, although it is thought the height of the five-star hotel will be drastically reduced from the 17-storey development rejected by the Scottish Government after a public inquiry.

The independent hearing found the proposed hotel would ruin classic views of the capital from around the World Heritage site, as well as dominating the Haymarket area.

The 192-room hotel, to be run by Intercontinental and boasting a rooftop swimming pool and bar, was the centrepiece of the scheme, which also envisaged the creation of a smaller budget hotel, office blocks, cafs and shops.

The scheme, which had been approved by the city council after only one hearing of its planning committee, had been called in by the government during an official visit to Edinburgh by inspectors from Unesco, who demanded major changes be made to the plans for the site.

Council officials have been desperate to see Tiger bring forward new proposals for the area, amid fears the four-acre site would remain empty for years if it was put on the market and failed to attract a buyer.

However, a Tiger spokesman said yesterday: "We are continuing to work with the City of Edinburgh Council, Scottish ministers and relevant stakeholders and are progressing proposals for a planning submission in due course."

A spokeswoman for Intercontinental said: "We have signed a management agreement with Tiger and we are still very keen to open an Intercontinental Hotel in Edinburgh. We are still very much involved in the plans that Tiger are taking forward for the site."

A city council spokesman said: "Any further proposals submitted for the site would be required to go through the new major planning application process. This would involve a minimum of 12 weeks' community consultation prior to the submission of an application."

Maria Kelly, chair of the Dalry Colonies Residents Association, said: "We had a meeting with the developers before Christmas and it was made absolutely clear to them at that time that they would have to go back to scratch.

"It shouldn't have been a surprise to anyone that their previous plans were rejected and we can only hope they will now begin to listen to what people in the area have been telling them. They will also know they have a statutory duty to consult properly under the new planning legislation."