Dalata receives council permission for £50m Edinburgh hotel

Dalata Hotel Group has secured planning permission to transform a vacant office building into its first hotel in Edinburgh.

The 167-bedroom Clayton hotel will feature a restaurant, bar, meeting rooms and lounges once complete.

Dalata acquired the 1,889 sq m site on St Andrew’s Square in October last year for £12.5m. It is set to receive a total investment of £48m.

The property also came with planning permission for a rooftop extension.

Planning documents from Edinburgh City Council revealed the proposed alterations “have been kept to a minimum and are appropriately designed to respect the listed building and its setting”.

The developers have been given three years from 13 March 2024 to act upon their planning permissions.

In its decision notice, Edinburgh City Council stated: “The revised scheme will deliver a sustainable and well-designed hotel development with activation at street level. The proposals include design features that will contribute to climate mitigation and adaptation, as well as encouraging biodiversity.”

Dermot Crowley, chief executive of Dalata, previously said: “Edinburgh has long been a target city for us to locate our brands and we are delighted to have secured such a prestigious building in the centre of the city.

“This will be our third hotel in Scotland. In the year to date, we have announced four new opportunities in three of the strongest city hotel markets in Europe – London, Amsterdam and Edinburgh. We will continue to seek out further opportunities in our target markets.”

Dalata, Ireland's largest hotel operator, also launched the Maldron Hotel Glasgow City in 2021 and Clayton Hotel Glasgow City in 2022. It owns more than 50 properties across the UK and continental Europe.

Photo: Dalata Hotel Group/Edinburgh City Council