No reservations about welcoming luxury hotel chain to Capital

The Jumeirah hotel group, which runs a series of exotic Middle East hotels including the famous Burj Al Arab in Dubai – unofficially dubbed the world's most luxurious – has launched a hunt for a site in the Capital.

Bosses at the company, which also runs London's five-star Jumeirah Carlton Tower and Essex House on New York's Central Park, have been in contact with city leaders about potential sites and plan a visit for talks.

Would a new hotel built by the owners of the Burj Al Arab be good for the city?

The company currently only has two hotels in the whole of the UK – both in London – but has previously announced plans for a "six-star" 23-storey-tall hotel in Glasgow.

News of the firm's interest in Edinburgh came at an international real estate fair in Cannes, France.

Economic development leader Tom Buchanan, who is representing the Capital at the event, said: "A number of major brands have shown an interest. Jumeirah Hotels is looking for an iconic site so we will come back (to Edinburgh] and have a look at potential sites for them.

"They say Edinburgh is one of the iconic cities in the world and, if you want to have a hotel in key cities, Edinburgh is one of them."

He also said that there had been strong interest in the redevelopment of Princes Street, the new St James Quarter and regeneration of the Waterfront area.

"At MIPIM, I've spoken to more than 80 investors with a direct interest in Edinburgh and once we come back I've got ten guaranteed investment visits arranged, where we will show them available sites and allow them to do due diligence on sites and visit the city," said Cllr Buchanan."

News of the interest from Dubai-based Jumeirah has been welcomed by business leaders in the Capital.

Graham Birse, deputy chief executive of the Edinburgh Chamber of Commerce, said: "Edinburgh is a destination that any world-class hotel brand is interested in; our occupancy and revenue per available room are in the top ten, which makes it attractive.

"But to bring a world-class hotel brand to Edinburgh you need a prime site and you need people to understand the needs of the developer. As seen with the Intercontinental Hotel Group at Haymarket (where the plans were thrown out], Edinburgh is not always the easiest place to make an inward investment, although that is changing."

The Chamber currently sees a need for more five-star hotel brands within the city centre, although it said any two or three-star brands should now only be built outside of the city centre.

At the MIPIM event, Edinburgh was judged "best small city" in Europe and the city's leadership and creativity was praised by the Urban Land Institute.