A FIVE-STAR hotel has been earmarked for a prime site on Edinburgh's tram route, with the transport project being key to the venture.
An Irish-American hotel giant has bought a former Georgian townhouse next to the Edinburgh Playhouse, which will be transformed into a 150- bedroom boutique hotel.
The £35 million venture is scheduled to open by the end of 2010, subject to pla
nning permission, and is expected to create more than 100 jobs.
Trams are due to start running in the city in February 2011 and the Fitzpatrick Hotel Group has revealed that the controversial transport project was a "major factor" in its decision to target the site at the top of Leith Walk.
The property, on Baxter's Place, had been earmarked for an 180-room student housing development, but has now been bought over in a deal thought to be worth £8 million.
Paul Fitzpatrick, whose family owns some of the leading hotels in New York and Dublin, has joined forces with Chris Stewart, an Edinburgh property developer, for the joint project.
The hotel group's portfolio includes the Fitzpatrick Castle Hotel on the outskirts of Dublin, as well as The Morgan and The Beacon in the city.
The business began when Paddy and Eithne Fitzpatrick converted the castle that overlooks Dublin Bay into a hotel in 1971. It is now run by their daughter, Eithne. Their son John runs the Fitzpatrick Grand Central and Fitzpatrick Manhattan in New York, while his brother Paul runs The Morgan and The Beacon in Dublin. Rory Duggan, the financial controller for the Fitzpatrick Design Group, said: "We're looking to create a chic and inviting, design-led hotel, which will provide an oasis for the corporate traveller during the week and fresh and funky option for the weekend leisure market.
"This is one of the most up-and-coming areas of Edinburgh with the changes that will be happening when the tram network opens, as well as the redevelopment of the St James Centre."
Colin Finlayson, director of the property agency Jones Lang LaSalle, said: "This is a further example of the regeneration of the east end of the city centre, which is set to undergo further change with the likes of the St James Quarter development and Stockland Halladale's redevelopment at St Andrew Square."
The full article contains 393 words and appears in The Scotsman newspaper.
