A FORMER Debenhams department store in Edinburgh city centre looks set to become a luxury hotel under a billionaire’s “ambitious” plans.
Zedwell Hotels plans to open its first hotel in Scotland in the vacant nine-storey Princes Street building.
The retail outlet closed its doors after more than 240 years of service back in May 2021 following a fire the month before.
Criterion Capital, owned by billionaire investor Asif Aziz, purchased the 116,500-square foot site and aims to transform the building into a luxury hotel.
The hotel group aims to build “cocoon” rooms, which are designed with noise-reducing walls, floors, and doors.
In 2021, Legal and General planned a £50m refurbishment of the former Debenhams building, including a 207-room boutique hotel. The plans were approved by City of Edinburgh Council but ultimately fell through.
Aziz, whose firm already has three hotels in London, has said the city's cultural significance and strong tourism appeal make it an ideal location to open a new hotel.
He said: “Opening our first hotel in Scotland is a significant step in our ambitious UK-wide expansion of our unique Zedwell hotel brand.
“Edinburgh’s rich history, cultural significance and strong tourism sector make it an ideal location for Zedwell.
“This project represents a fantastic addition to our committed pipeline of 22 hotels with over 7000 rooms.”
Kerr Young of JLL, the property agents who advised on the sale, said: “Edinburgh remains the best performing hotel market in Europe.
“We are very excited to facilitate the entry of a new hotel concept such as Zedwell, which will support the adaptive reuse of a strategically important property located in the heart of the city centre.”
