Construction has commenced on a £95m ($127m) hotel development at 60 Morrison Street in Edinburgh, Scotland, following a pre-let agreement between MRP Investment & Development and Dalata Hotel Group.
The scheme will deliver a 256-bedroom, four-star Clayton Hotel, marking Dalata’s second such hotel in the city.
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MRP has secured financial backing for the project from AIB.
Located next to the Edinburgh International Conference Centre (EICC), the hotel is expected to draw steady demand from business, conference and leisure travellers.
Design and build contractor McAleer & Rushe is leading the transformation and extension of an existing six-storey office building on the site.
Once completed, the building will feature three newly added upper floors, resulting in a nine-storey hotel with restaurant, gym, bar and business facilities.
The project aims to achieve BREEAM ‘Excellent’ and EPC ‘A’ ratings by retaining and repurposing the existing structure and installing energy-efficient systems throughout the new hotel.
MRP development director Angus Monteith said: “The commencement of construction, alongside the support of Dalata as operator and AIB as funding partner, represents an important step forward for this development.
“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.”
The development extends a history of collaboration among MRP, Dalata, McAleer & Rushe and AIB. All four have previously partnered on several projects in the UK and Ireland.
McAleer & Rushe senior director Mark Diamond said: “Building on our extensive experience in delivering high-quality hotel developments and complex city-centre regeneration projects, this project demonstrates how existing buildings can be successfully repurposed to create modern, sustainable developments that meet changing market needs, supporting the continued regeneration of city centres.”
Dalata Hotel Group deputy CEO Shane Casserly said: “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.”
