Plans to turn former Debenhams in Edinburgh into hotel

A billionaire investor is planning to transform the former Debenhams on Princes Street in Edinburgh into a hotel.

The former department store site was purchased by Criterion Capital, the development company led by Asif Aziz.

In 2021, Legal and General planned a £50 million redevelopment of the building, including a 207-room boutique hotel and a “hospitality hub”, but this fell through.

If the latest plans go ahead, this will be the first Zedwell hotel in Scotland.

There are already three Zedwell hotels operating in London, including one in Piccadilly Circus. Another hotel is scheduled to open in Manchester in 2026.

Mr Aziz said opening a hotel in Scotland would be “a significant step” towards the company’s plans to expand in the UK.

He said: “Edinburgh’s rich history, cultural importance and strong tourism sector make it an ideal location for Zedwell.

“This project represents a fantastic addition to our committed portfolio of 22 hotels with over 7,000 rooms which, together with our expanding residential and commercial portfolios, will see our AUM exceed £6 billion.”

Zedwell hotels have “cocoon” rooms, with noise-reducing walls, floors and doors.

Debenhams closed in May 2021 following a major fire in April.

The company announced in February of that year that it would not reopen any of its stores in Scotland — including its Edinburgh store — after lockdown.

The building was put up for sale in September last year.