The transformational scheme will see Osborne House, an old 1970s office building within the Wester Coates area converted into a new 157-bedroom hotel, with a restaurant and bar on the ground floor.

York-based S Harrison acquired the four storey building in 2018 and the development is one of five that the firm is currently working on Edinburgh, which have a total gross development value of £140 million.

Designed by the renowned modernist architecture studio Morris and Steedman, Osborne House is located close to the Haymarket tram stop and only a short walk from Princess Street.

Ann Scott, S Harrison’s managing director, said: “It’s the ideal location for a hotel. Osborne House has a prominent corner position and benefits from excellent transport connections.

“We will be retaining the current structure and facades of Osborne House but repairing and refurbishing the entire building as well as creating a new top floor, which looks out over West Coates. The new high quality glazed façade will create a lightweight feel, and we are confident the development will blend in with the surrounding environment.

“We will also be replacing a single storey building on Devon Place with a new extension at the back of Osborne House that will have an aluminium-clad façade, with projecting narrow fins, to provide a modern interpretation of what’s already in place. With soft landscaping and planting at the front and rear of the hotel, we will be improving the current street scene, creating a welcoming entrance with a taxi-drop off area. There will also be disabled parking, a cycle storage area for employees and guests, and a dedicated service bay for deliveries.

“Replacing the dated elements of Osborne House, which has been largely unoccupied for the last 3 years, with a vibrant new hotel will not only create employment opportunities, but reinvigorate this tired old building and give it a bright new future. Our successful track-record for hotel development has been recognised by the local community and planners, and we look forward to bringing the scheme forward.”

S Harrison is currently converting Buchan House, a historic Grade A listed building on St Andrew Square, into a new 72-bedroom hotel with Malmaison Hotel du Vin Group. It recently submitted planning applications to create two student accommodation schemes in Edinburgh, consisting of 269-bedrooms on Gorgie Road next to the Water of Leith, and another with 394 bedrooms, on the corner of Westfield Road and Westfield Avenue. It is also exploring opportunities for a 0.6 hectare site it owns on Ocean Drive in Leith.

In 2016, S Harrison completed work on a £23m 240-bedroom student accommodation scheme, with retail units on the ground floor, on Leith Walk, known as Haddington Place.

Ann added: “We have made a significant investment in Edinburgh in recent years and are actively exploring more development opportunities in and around the city.”