The project, a collaboration with property developer S Harrison, will refurbish Osborne House in the Haymarket area into a 157-bedroom hotel, featuring a bar and lounge on the ground floor.

York-based S Harrison acquired Osborne House in 2018 and has worked with Edinburgh-based architect CDA on the transformational plans for the building.

The building, which is located just West of Edinburgh’s city centre, is close to the Haymarket tram stop, and only a short walk from Princess Street.

Since MEININGER unveiled its first hotel in Berlin in 1999, it has grown and now offers more than 19,000 beds in 26 European cities such as Kraków, Cologne, Amsterdam, Berlin, Copenhagen, Milan, Paris, Rome and Vienna.

The 157-bedroom Edinburgh hotel will have 549 beds in a mix of rooms including classic doubles, and private multiple-bed rooms. It will also have a taxi drop-off area, disabled parking and secure cycle store. Work will start on the new hotel early next year.

Ann Scott, managing director at S Harrison said: “We’re very pleased to agree this deal and look forward to seeing our vision for Osborne House begin to take shape. Edinburgh remains one of Europe’s most popular destinations for tourists and business travellers, hence our decision to hold this asset to further strengthen our investment portfolio.

“MEININGER has established an enviable reputation for offering modern, well-designed hybrid hotels in key cities throughout Europe that appeal to all types of guests.

“When all this is combined with Osborne House’s location, in a very vibrant area, just a five-minute walk from Haymarket station and close to both Murrayfield Stadium and Edinburgh city centre, there’s no doubt it will become a very popular hotel.”

Ajit Menon, CEO at MEININGER Hotels added: “We are excited to bring the proven and successful MEININGER hybrid hotel concept to Edinburgh, re-entering the United Kingdom and further expanding our presence in Europe.

“We believe that Edinburgh, with its lively, diverse and unique nature resonates with the MEININGER culture. Edinburgh attracts families, couples, backpackers, school groups, friends and business travellers alike, making the city a perfect fit for our brand.”

S Harrison has made a substantial investment in Edinburgh in recent years and this latest hotel project follows the company delivering the landmark boutique hotel for Malmaison in the heart of Edinburgh’s New Town. The work saw the Grade A listed Buchan House, on the north-west corner of St Andrew Square, converted into a stylish 72-bedroom hotel complete with Malmaison’s renowned Chez Mal Bar and Brasserie.

The developer also recently secured planning permission for two purpose-built student accommodation (PBSA) schemes consisting of 64 studio apartments, on East Newington Place, off Newington Road and 76 studios within the historic surroundings of Canongate, just behind the Royal Mile.

In addition, S Harrison recently submitted exciting proposals for a residential-led development at Ocean Point 2 in Leith for planning approval.