Dalata secures council permission for £50 million hotel in Edinburgh

Dalata Hotel Group has successfully obtained planning permission to convert a vacant office building into its first hotel venture in Edinburgh.

Upon completion, the 167-bedroom Clayton hotel will offer a range of amenities including a restaurant, bar, meeting rooms, and lounges.

Dalata acquired the 1,889 sq m site located on St Andrew's Square in October of the previous year for £12.5 million. The project is slated to receive a total investment of £48 million.

Additionally, the property obtained planning permission for a rooftop extension as part of the acquisition.

According to planning documents from Edinburgh City Council, the proposed alterations have been meticulously kept to a minimum and are thoughtfully designed to honor the listed building and its surroundings.

The developers have been granted a three-year window from March 13 2024, to act upon their planning permissions.

In its decision notice, Edinburgh City Council stated: 'The revised scheme will deliver a sustainable and well-designed hotel development with activation at street level. The proposals include design features that will contribute to climate mitigation and adaptation, as well as encouraging biodiversity.'

Dermot Crowley, chief executive of Dalata, previously said: '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. In the year to date, we have announced four new opportunities in three of the strongest city hotel markets in Europe – London, Amsterdam and Edinburgh. We will continue to seek out further opportunities in our target markets.'

Dalata, recognised as Ireland's largest hotel operator, expanded its portfolio with the launch of the Maldron Hotel Glasgow City in 2021 and the Clayton Hotel Glasgow City in 2022. With ownership of over 50 properties spanning the UK and continental Europe, Dalata continues to establish its presence in key markets.