New hotel set to kick-start waterfront's regeneration

The city council is understood to be close to concluding a deal with a firm that wants to build a hotel at a prominent corner site that links Waterfront Avenue and West Harbour Road.

It is the latest boost to the Capital's hotel sector, and comes as it also emerged that the former offices of firm Morton Fraser, on Queen Street, are to be turned into a hotel.

The name of the hotel firm is being kept secret, but it is set to become the first hotel to be created at Granton's waterfront.

It has also emerged that housing developer Places for People is to start work on a development of 62 homes later this year on part of the former Madelvic car factory site, also on Waterfront Avenue.

Councillor Tom Buchanan, the city's economic development leader, said: "The level of interest in this site is a clear signal that the waterfront and Granton remain attractive to developers."

Waterfront Edinburgh, the council's development firm, gained outline planning consent for the hotel as part of wider development of the "Harbour Road C".

It is hoped that securing a hotel will help attract firms to develop the other aspects of the site, including dozens of apartments, a pub, restaurant and convenience store.

In a new report for councillors, Dave Anderson, director of the council's city development department, said talks were taking place between Waterfront Edinburgh and city planners about "refreshing and rationalising the current planning position". He said: "This is with the aim of removing certain constraints to development and looking for alternative interim uses where this is appropriate."

Developers are also working up proposals for a care home and housing on land owned by Waterfront Edinburgh.

Interest in hotel development in Edinburgh is said to still be very strong, with Hyatt, Jumeirah and the InterContinental Hotel Group among the big name luxury brands said to be looking for sites in the city.

Marriot Hotels also recently announced it will bring its Residence Inn brand to the UK for the first time as part of the Quartermile development.

Budget operators are also expanding and it has emerged that Travelodge will open a hotel on Queen Street.

Greg Ward, head of economic development at the city council, said: "We are constantly getting interest from the hotel sector and Edinburgh is near the top of the list of cities they want to be in."