ISG has been selected to deliver two new multi-million pound hotel projects in Edinburgh city centre.

The company is set to convert former BHS store at 64 Princes Street in a £20.5m scheme to create a 137-bed Premier Inn. The mixed-use development also includes the delivery of two new restaurants on Rose Street, and a flagship 40,000 sq ft retail store on Princes Street, which involves linked buildings on Princes Street and Rose Street.

Works will include demolishing existing Rose Street property and erecting a new 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. In addition, existing window sections on the Princes Street building's façade will be replaced. Work is scheduled to be complete in spring 2020.

Elsewhere, ISG has been appointed to redevelop Erskine House on Edinburgh's Queen Street into a new 280-cabin hotel for Starwood Capital in partnership with YOTEL. The company will 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, as well as YOTEL's Club Lounge concept, with flexible meeting and co-working space. The hotel is scheduled to open in early 2019.

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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. From highly complex new build projects on tightly constrained sites in the Old Town, through to the redevelopment and modification of existing buildings, each of these projects has a unique set of delivery challenges but the common principle that they must all enhance the built environment."

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. ISG has considerable experience with this type of scheme and we are looking forward to working with them."

(LM/MH)