Two hotel projects in Edinburgh city centre awarded to ISG

29 May 2018

ISG continues to build on its reputation as Edinburgh’s preferred hospitality contractor, securing a further two hotel projects in the city centre. Both schemes will transform underused properties in the city and cumulatively add 417 new hotel rooms as global demand from visitors to Scotland’s capital continues to outstrip supply.


ISG is set to convert the former BHS store at 64 Princes Street into a 137-bed Premier Inn. The mixed-use development also includes the delivery of two new restaurants on Rose Street, and a flagship 40,000 sq ft retail store on Princes Street, which involves linked buildings on Princes Street and Rose Street. 


The £20.5 million scheme sees the contractor demolish the existing Rose Street property and erect a new hybrid concrete and steel frame building, extending one additional storey higher on the site. A further floor will also be added to the Princes Street building, which will be physically linked to the Rose Street site via a new bridge. The transformation of the site is completed with replacement of the existing window sections on the Princes Street building’s façade, with work scheduled for completion in spring 2020.


The company’s second hospitality win is the multi-million-pound redevelopment of Erskine House on Edinburgh’s Queen Street, to create a 280 ‘cabin’ hotel for Starwood Capital in partnership with YOTEL. The hotel’s new design concept has been successfully launched in New York, London and Singapore, and Edinburgh will become the next city to feature YOTEL’s unique stylistic theme – reviving the comfort of luxury travel.


ISG will extensively reconfigure space within the former office building, including the refurbishment of a large double-height glazed atrium to create an impressive screening room and events space, with a destination bar fronting Queen Street. Facilities will also include a fully equipped luxury gym and spa, and YOTEL’s renowned Club Lounge concept, with flexible meeting and co-working space. The hotel is scheduled to open in early 2019.


Andy McLinden, managing director for ISG’s Construction North and Scotland business, said: “Edinburgh’s global appeal as a top travel destination creates significant opportunity for forward thinking developers and hotel operators. Demand for quality hotel accommodation consistently outstrips supply throughout the year, and predictions that 9,000 new rooms will be needed by 2021 to simply keep pace with rising visitor numbers shows the scale of the challenge.


“The city’s response has been extremely positive and we’re pleased to be playing an active role in bringing a range of international brands into Edinburgh for the very first time. From highly complex new build projects on tightly constrained sites in the Old Town, through to the redevelopment and modification of existing buildings, each of these projects has a unique set of delivery challenges but the common principle that they must all enhance the built environment.”


Steve Spray, Fund Manager at LaSalle Investment Management, which represents the owner of 64 Princes Street, said: “We are happy to have concluded a contract with ISG for this important redevelopment which will contribute to the economy and create jobs by bringing a large amount of city centre floor space back into commercial use. ISG has considerable experience with this type of scheme and we are looking forward to working with them.”


ISG’s specialist expertise in the hospitality sector has led to the company working on many of the world’s best-known hotels. In Scotland, ISG’s portfolio includes the iconic Old Course Hotel and Hamilton Grand development in St Andrews, as well as the renowned Gleneagles Hotel and Cameron House Hotel. The company’s comprehensive upgrade of the Trump Turnberry has recently helped the hotel secure the coveted accolade of Scottish Hotel of the Year.

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