The 235-bedroom development will see a number of listed buildings bought back into use, and the space between Victoria Street and the Cowgate developed.

Drawn up by ICA Architects on behalf of Jansons Property, the hotel would be at the heart of a £65 million regeneration push for the A-listed India Buildings on Victoria Street and surrounded by a new entertainment destination of bars, restaurants, cafes and public space.

As part of the plan, The Cowgatehead Church is to be renovated and brought back into use as the function facilities for the new hotel.

The external appearance of the buildings on Victoria Street is to change very little and many of the period features within the listed buildings are to be retained.

If approved, the hotel development could be open for business by the end of 2017.

Andy Jansons, managing director of Jansons Property, said: “We’re determined to make sure that these proposals transform this fantastic area of the city centre.

“Victoria Street is undoubtedly a real gem for residents and visitors alike, and these proposals will help the shops and the street to thrive.

“Our proposals will also lift what is one of the most run-down frontages of the Cowgate.”

He added: “Delivering high-quality hotel accommodation in the centre of Edinburgh was the major driver for this vision. Our team has worked hard to ensure that these are high quality proposals for one of the most exciting development sites in Scotland.

“The debate in the area has moved on in recent years from hostels to hotels, and I feel the balance should move even further from ‘drinking dens’ towards shopping and leisure. That way some of the run-down closes can fully realise their potential and make a great place to live and visit, even better.”