Big changes planned for capital
ISG secures £20.5 million city centre hotel project
More property changes lie ahead for the centre of Edinburgh, including a new hotel and flagship retail store on Princes Street
ISG has secured a second hotel project in Edinburgh, with the £20.5 million development of property in Princes Street.
The two schemes will transform underused properties in the city and cumulatively add 417 hotel rooms as global demand from visitors to the capital continues to outstrip supply.
ISG will convert the former BHS store in Princes Street into a 137-bed Premier Inn. The mixed-use development also includes the delivery of two restaurants on Rose Street, and a flagship 40,000 sq ft retail store on Princes Street, which involves linked buildings.
The contractor, which is headquartered in Connecticut and has an office in Stepps outside Glasgow, will demolish the existing Rose Street property and erect a hybrid concrete and steel frame building, extending one additional storey higher on the site.
A further floor will also be added to the Princes Street building, which will be physically linked to the Rose Street site via a new bridge.
The transformation of the site is completed with replacement of the existing window sections on the Princes Street building’s façade, with work scheduled for completion in spring 2020.
The company’s second hospitality win is the multi-million-pound redevelopment of Erskine House on Queen Street, to create a 280 ‘cabin’ hotel for Starwood Capital in partnership with YOTEL.
The hotel’s design concept has been successfully launched in New York, London and Singapore, and Edinburgh will become the next city to feature YOTEL’s unique stylistic theme – reviving the comfort of luxury travel.
ISG will extensively reconfigure space within the former office building, including the refurbishment of a large double-height glazed atrium to create an impressive screening room and events space, with a destination bar fronting Queen Street.
Facilities will also include a fully equipped luxury gym and spa, and YOTEL’s renowned Club Lounge concept, with flexible meeting and co-working space. The hotel is scheduled to open in early 2019.
Andy McLinden, managing director for ISG’s Construction North and Scotland business, said: “Edinburgh’s global appeal as a top travel destination creates significant opportunity for forward-thinking developers and hotel operators.
“Demand for quality hotel accommodation consistently outstrips supply throughout the year, and predictions that 9,000 new rooms will be needed by 2021 to simply keep pace with rising visitor numbers shows the scale of the challenge.
“The city’s response has been extremely positive and we’re pleased to be playing an active role in bringing a range of international brands into Edinburgh for the very first time.”
Steve Spray, fund manager at LaSalle Investment Management which represents the owner of 64 Princes Street, said: “We are happy to have concluded a contract with ISG for this important redevelopment which will contribute to the economy and create jobs by bringing a large amount of city centre floor space back into commercial use.”