Two hotel deals have been announced in Edinburgh as the city continues to draw investment into the tourism sector.

Dalata Hotel Group has acquired a prime listed property in Edinburgh’s St Andrew Square in a £12.5 million deal.

Warner Leisure Hotels, has taken ownership of the four-star Dalmahoy Hotel and Country Club, 10-miles west of Edinburgh.

Its first hotel in Scotland is a 215-bed manor house set in more than 1,000 acres, with two golf courses, two restaurants, two bars, a leisure club, tennis courts and conference facilities.

Bourne Leisure, owned by Blackstone-managed funds, has committed over £100m in the acquisition and redevelopment of the property, along with the Forest of Arden Country Club, near Birmingham. A refurbishment programme is being planned.

Ireland-based Dalata will invest a total of £48m creating a 153-room four-star Clayton Hotel in the St Andrew Square offices which have housed a number of blue chip firms, including Scottish Equitable, Scottish & Newcastle, Virgin Money, Trustpilot and Rathbones. The building has been owned latterly by Aviva.

The Category A listed building extends to 48,238 sq ft and occupies a prominent corner position on St Andrew Square which is also home to the Edinburgh Grand, Gleneagles Townhouse and Malmaison hotels. There were plans by Cliveden in 1997 to convert number 28 to a hotel.

Dermot Crowley, chief executive of Dalata, commented: “Edinburgh has long been a target city for us to locate our brands and we are delighted to have secured such a prestigious building in the centre of the city – this will be our third hotel in Scotland.”