Artisan Real Estate has been granted planning permission by the City of Edinburgh Council (CEC) to redevelop Albany House at 58 Albany Street, Edinburgh, into a 102-bedroom hotel.
The project is due for completion in summer 2027, with Whitbread plc set to operate the site as a hub by Premier Inn.
The five-storey office building, built in the 1980s, will retain much of its external structure, with the top floor facade being replaced with new cladding to meet modern standards.
Inside, air-sourced heat pump technology will replace the current fossil fuel heating and hot water system.
David Westwater, managing director for Scotland at Artisan Real Estate, said: “This exciting hotel development will bring continued interest and investment to a vibrant corner of Edinburgh’s eastern city centre.
“We are pleased to be once again working with Whitbread to create a modern and contemporary hotel interior providing the high levels of insulation and energy technology, delivering both a sustainable and attractive addition to Edinburgh’s successful hospitality sector.
“The existing sandstone building is well-suited to hotel development with high levels of natural daylight and an established entrance area.”
Westwater added: “Albany House is the latest in a succession of high-profile planning proposals delivered by Artisan in Edinburgh’s city centre during the last 12 months and reinforces our stated commitment to bring substantial investment coupled with high quality development to the heart of Scotland’s capital.”
Current tenants will move to new offices in the city centre in 2026.
Jill Anderson, acquisitions manager for Whitbread, said: “Albany House is an excellent location for a hub by Premier Inn hotel, and I am very pleased to be working with Artisan to expand our footprint in the city in a sustainable way through the proposed conversion of the 1980s office building.
“Our hub by Premier Inn hotels are designed to appeal to budget, short-stay travellers, looking to stay in the most interesting and connected city centre locations.
“It offers all the comfort, consistency, and reliability of Premier Inn, but with a smaller bedroom and the format allows us to offer great value rooms in the most vibrant places.”
Anderson added: “Premier Inn has been part of Edinburgh’s hospitality scene for more than 30 years.
“We’re incredibly proud to have built a network of popular, good-value hotels across the city, and we see great potential for further investment driven by our own high occupancy in the city and the fact that budget hotels like Premier Inn account for just 20% of the city’s bedroom stock.”
