UK and Ireland hotel group Jurys Inn and its owner Fattal Hotels aim to invest the sum in the redevelopment and expansion of the existing Jurys Inn Edinburgh hotel and its neighbouring Old Town site.

The scheme, which remains subject to planning approval, will see the addition of up to 101 rooms to the existing 186-room hotel.

As well as this a listed building on the adjacent land will be converted into a 131-bedroom NYX hotel, which will be operated by Jurys Inn. Another 31 residential units are planned for development on the site.

Jason Carruthers, managing director of Jurys Inn, said: “We are pleased to have acquired the freehold of our very successful Jurys Inn Edinburgh hotel and the adjacent site, which will allow us to transform the site and significantly enhance our product offering and overall capacity in Edinburgh.

“Our Edinburgh hotel already runs at over 95% occupancy and the acquisition of the freehold there puts us in a strong position to capitalise on the ongoing influx of tourists to the vibrant city of Edinburgh and to leverage the prime location of our hotel and the adjacent site, which we look forward to developing.”