Plans for a new 143-bedroom Dakota hotel in Edinburgh city centre have been approved despite concerns over housing and the continued growth of tourist accommodation in the capital.
City of Edinburgh Council has given the green light for the seven-storey hotel at 108–116 Dundas Street, on the site of the former Centrum House and Bupa House offices.
The development will include a brasserie-style restaurant and cocktail bar at ground-floor level, alongside a gym, lounge and meeting rooms.
Penthouse suites with private roof terraces are planned for the top floor, while landscaping, car parking and cycle parking also form part of the development.
The site previously had permission for a residential-led development containing 49 apartments and three commercial units. That scheme was approved in 2024 but the developer subsequently said it was no longer financially deliverable.
The site was instead brought forward by Dakota Hotels for a 143-bedroom hotel, retaining broadly the same scale and external form as the previously approved residential development.
The hotel plans were approved by councillors at a meeting of Edinburgh’s Development Management Sub-Committee on Wednesday (30 September).
The development will occupy a prominent corner site at Dundas Street and Fettes Row within Edinburgh’s New Town Conservation Area and the Old and New Towns of Edinburgh UNESCO World Heritage Site.
The application attracted debate over the balance between visitor accommodation and permanent homes as the city faces significant housing pressures.
Edinburgh declared a housing emergency in 2023, while the continued expansion of the city’s tourism industry has prompted wider debate about the number of hotels, short-term lets and other forms of visitor accommodation.
The hotel proposal largely retains the height, scale and architectural approach already approved for the residential development.
The existing office buildings are undergoing significant demolition works ahead of the site’s redevelopment. Dakota said the hotel would make a positive contribution to the changing nature of the surrounding area.
Dakota already operates a hotel at South Queensferry, close to the Forth bridges, alongside properties in Glasgow, Manchester, Leeds and elsewhere in the UK.
The Edinburgh development would become the eighth hotel in the Dakota portfolio. Dakota was created by Glasgow born hotelier Ken McCulloch who had previously launched the Malmaison brand and launched One Devonshire Gardens. It is owned by Evans Property Group.