Planning permission was given to international group Fattal to build the 131-room hotel in Jeffrey Street.

Fattal was also given permission to expand its neighbouring Jurys Inn Hotel.

The developments are set to create around 80 permanent jobs in the city.

The redevelopment will also see 31 homes built on the site.

Jason Carruthers, managing director of Jurys Inn and Leonardo UK and Ireland, told The Scotsman that the group is targeting further acquisitions and new builds in Edinburgh and across ­Scotland, as it looks to achieve the ambitious target of ­growing its room stock by 10 per cent per annum.

Mr Carruthers described the Nyx brand as a “lifestyle, boutique” hotel with a strategy of launching in cultural hotspots throughout Europe.

He said: “We’ve been very selective about where we’ve earmarked for the Nyx brand. A Nyx is a lot more vibrant and lively, which is absolutely perfect for Edinburgh. The art scene in Edinburgh, the music and cultural scenes, will all be reflected in the style and the offer of that particular hotel.”