Plans by Legal & General, on behalf of the L&G UK Property Fund, will deliver a 207-room four-star Marriott Tribute hotel with a rooftop bar and city centre ‘hub’ with space for local businesses.

The City of Edinburgh Council planning committee agreed unanimously that it would “set the tone” for the future regeneration of Edinburgh city centre.

The design by ICA Architects will restore and protect the heritage of the building for the long term and also contribute towards the council’s long-held ambitions to create a café culture on its most famous street.

No car parking is proposed, but 42 indoor cycle parking spaces will be provided within the development.

Construction work will begin in 2022 with the new boutique hotel scheduled to open in 2024.

Nida Rehman, development manager for Legal & General, said: “We’re obviously delighted with this decision which is both a vote of confidence in our proposals and in the future of Princes Street itself.

“There can be little doubt that the views from these magnificent buildings will be fantastic, but we are determined that the experience for people who come to visit, eat, shop, relax and simply spend time will be every bit as special.”