£50m hotel planned for Debenhams Princes Street

Scotland: Princes Street in Edinburgh is set to welcome a luxury four-star hotel as part of a £50 million redevelopment scheme, with proposals due to be submitted to the City Council this week.

Legal and General own the building in the L&G UK Property Fund, and said the hotel is likely to open in the latter half of 2024. Debenhams is set to leave the property within the next couple of years.

The hotel will feature a rooftop bar with 360 degree views of Edinburgh and the castle, as well as a spa and space for local businesses.

A new public close linking Princes Street to Rose Street will run through the building with shops, restaurants and cafes. A casual fine dining restaurant will connect to the hotel space.

The facades of the buildings at 109-112 Princes Street will be retained, with the staircase inside Debenhams forming part of the design by architects ICA. 

The building itself is to be completely rebuilt, with mezzanine suites overlooking the castle. The majority of the rooms will be positioned towards the back of the property.

Matt Jarvis, senior fund manager at Legal and General, said: “As normality begins to return around the world, it has never been more important that we support the UK’s cities in continuing to adapt, change and innovate; supporting their economic recovery and continuing to promote them as attractive places to live, work and visit.

“Our vision for Princes Street will do just that, whilst securing these important buildings as a vibrant hub in the centre of one of the world’s great cities. For the L&G UK Property Fund, this represents a exceptional opportunity, in line with its strategy to diversify into more operational and alternative assets, and offering a platform to drive forward value for investors.”

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