The budget hotel operator has been granted planning permission to develop Princes House, a listed building and three storey office block, next door to its current 72-bed Cityroomz hotel on Shandwick Place near Princes Street in Edinburgh’s West End.

The development is being carried out in partnership with property and investment company Town Centre Securities PLC.

The new rooms should be open by June 2017 and will increase occupancy to 115 rooms including new double, twin and family rooms as well as ten suites with kitchenettes and living space.

David Myers, chief executive of Sleeperz Hotels, said: “Sleeperz Hotels is delighted to be expanding its market leading Cityroomz operation.

“Our brand of low cost high quality hotel stays has proven a winning formula nationally and we are confident that demand for stylish but affordable rooms in Edinburgh will keep growing.”

Colin Steele, associate director at Caledonia Management Ltd, acting for Town Centre Securities, said: ‘This development is great news for Princes House and the West End of Edinburgh. The area is the cultural heart of Edinburgh, with its World Heritage Site, theatres, arts venues and stunning architecture.

“Cityroomz increased bed-stock is a welcome boost and provides affordable accommodation for tourists staying in this vibrant area.”

Glasgow architects Maith Design have been engaged to transform the space and deliver the ambitious expansion plans.