A FORMER office in Edinburgh is set to be transformed into a new budget hotel.
Whitbread PLC, owner of the Premier Inn hotel chain, has been granted planning permission for the conversion of Capital House in the centre of Edinburgh into a 195-bedroom Premier Inn.
The new Premier inn is anticipated to eventually have more than 56,000 business and leisure guests.
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Jill Anderson, acquisitions manager for the firm, said: “Getting the green light to convert the 1980’s office into a latest format Premier Inn is a huge achievement for the team.
“We have an established network of 14 trading Premier Inn hotels in Edinburgh which welcome a million visitors a year and drive £32 million in annual external spending in the city.”
Whitbread will invest £21m in the conversion and rear extension of the office building with a ground floor restaurant and bar.
Anderson commented: “The strong year-round demand we are continuing to experience for our rooms in the city is driving the expansion of Premier Inn across Edinburgh.
“It is a sensational location for a budget hotel given its proximity to iconic tourist destinations like Edinburgh Castle, a host of theatres and concert venues, the Edinburgh International Conference Centre (EICC) and the Exchange District.”
Whitbread acquired Edinburgh Capital House in late 2024, and submitted their planning application to change the 1980s block office to a hotel in May 2025.
The company is also working to expand the presence of Premier Inn at Edinburgh Airport, and add a fourth hub by Premier Inn hotel to the east of the city centre.
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