Interserve has landed a deal with Whitbread to build an £11.4m hub by Premier Inn hotel in Edinburgh’s West End.
The contractor will develop and build the 150-bedroom hotel for Whitbread on a site in Torphichen Street, in Edinburgh’s financial district.
Interserve has completed the purchase of the site and secured a forward-funding deal from Aberdeen Asset Management to fund the development on a turnkey basis for Premier Inn.
It has submitted a detailed planning application and work is expected to start on site in summer 2015.
Hub by Premier Inn is the compact city centre hotel format from the hotel chain and this will be the third hub hotel to open in the city.
Interserve executive director Dougie Sutherland said: “This is another fantastic development scheme in Edinburgh and sits comfortably with the Haymarket site that we are already developing.
“The scheme also reflects the successful partnership we have built with Premier Inn and we are now developing two sites in Edinburgh and one in Newcastle for them.”
Whitbread Hotels and Restaurants senior acquisitions manager Kevin Murray said: “This is another outstanding deal for Whitbread – expanding the development pipeline for our new Hub by Premier Inn format, ahead of its launch this November, and marking our third deal with Interserve.”
He added that Premier Inn would invest £11.4m in the new hotel, creating 35 jobs.