Development funding has been secured for the site at 60 Morrison Street from AIB, with work commencing on the £95m scheme.

This will deliver Dalata's second Clayton Hotel in Edinburgh.

Located adjacent to the Edinburgh International Conference Centre (EICC), the new site is expected to benefit from demand across the corporate, conference and leisure sectors.

Design and Build contractor McAleer & Rushe has now commenced works to transform and extend the existing six-storey office building.

The project will see the structure retained and stripped back to its frame before the addition of three new storeys, creating a contemporary nine-storey hotel complete with restaurant, bar, gym and business facilities.

The building is designed to achieve BREEAM ‘Excellent’ and EPC ‘A’ ratings.

•   The Finance Professional Show 2025: The Video
•   Puma funds Glasgow PBSA with £58m
•   Northern growth boosting hotel & leisure construction

"The commencement of construction, alongside the support of Dalata as operator and AIB as funding partner, represents an important step forward for this development,” said Angus Monteith, development director at MRP.

“Edinburgh continues to demonstrate strong fundamentals as a hotel market, underpinned by a vibrant tourism sector, a growing conference market and a resilient business economy.

“We have worked successfully with both Dalata and AIB for many years and are pleased to be partnering with them again to deliver a high-quality hotel in one of the city's most sought-after locations."

Shane Casserly, deputy CEO at Dalata Hotel Group, added: "This will be our second Clayton Hotel in the city and it represents another important investment in a market where we continue to see strong long-term demand from both business and leisure travellers.

“This is an exceptional city-centre location adjacent to the EICC, one of the UK's leading conference venues, and we look forward to working with MRP and McAleer & Rushe to bring a high-quality new hotel offering to Edinburgh."