Edinburgh-based Code, which already runs a hotel in the Scottish capital, wants to turn the A-listed former district court and cells at 1a Parliament Square on the Royal Mile into modern pod-style accommodation.

It is proposed that the majority of the existing Georgian building pattern will be kept with the original features and the character of the courthouse and cells exposed to create the boutique hotel.

It is also planned to reinstate many of the existing blocked up windows and recreate the original, historic entrance door in the building currently used mainly for storage.

Code said that the accommodation will appeal to ‘responsible green travellers’ with young Chinese tourists high on the list of target markets.

The applicant’s supporting statement stated: “The existing building is inefficiently utilised given the original design of the building for holding cells and court rooms.

“This proposal by Code seeks to utilise and celebrate the historic fabric of the building through ensuring that every possible aspect of the building is put to good use.

“It is the historic and original use of the building which excites Code and would be used as a key component of the marketing and theme of the new hotel to provide a unique visitor experience.

“Given the number of younger visitors travelling to Edinburgh it is surprising not to see more good modern, high quality hostels in operation.”

The design statement added: “Code are currently looking to provide additional accommodation within their home city, Edinburgh, with the proposals to create a world class boutique pod hotel at 1a Parliament Square.

“This would act as the firm’s flagship property and company headquarters.

“Code are tapping into a trend towards boutique pod-style accommodation in Europe, mirroring its success in Asia,where the hostels help meet the demand for high quality affordable overnight stays in high-density urban areas.

“Code prides itself on working with local business within Edinburgh which includes software developers, designers and architects, and want to take local suppliers on their journey with them.”

Andrew Landsburgh from Code, which also has the Code Capsule Hotel off Rose Street, told the Herald: “Our pod hotel concept is taking off and highly popular.

“We are expanding the successful brand with our second location in Edinburgh.

“This unique venue, in such an iconic Old Town location, will be a great boost to this expanding market particularly with overseas visitors.”

The refit could start this autumn if approved.