Dalata to invest €55.3m in new Edinburgh hotel

Hotel group Dalata has bought a development site in Edinburgh, investing £48 million (€55.3 million) in the planned hotel as it expands its footprint in Scotland to three hotels.

The company also said it had completed the €29.5 million deal to buy the leasehold interest in Hard Rock Hotel Amsterdam American, which was announced last month.

Dalata’s new Edinburgh site is at 28 St Andrew’s Square, with the £12.5 million purchase funded from the company’s existing cash and banking facilities. The site includes a vacant Category A-listed building approved for office use and planning permission for an extension to the rooftop and rear of the property.

Dalata will submit a revised planning application early next year and build a new four-star Clayton Hotel, with 153 bedrooms, a bar, restaurant, dry gym and two large meeting rooms. The project, which will cost a total of £48 million, is set to be completed by mid-2026 and will create new jobs once the hotel is operational.

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The Edinburgh hotel will also be one of the company’s first property designed to operate with zero on-site carbon emissions.

“Edinburgh is one of the top performing hotel markets in Europe and we are delighted to secure a development site in such a prestigious location,” said Shane Casserly, Dalata’s corporate development director. “Our development team has extensive experience and history in delivering complex projects, we look forward to collaborating with Edinburgh authorities, to deliver a flagship Clayton hotel with zero on-site operational carbon by mid-2026.”

Chief executive Dermot Crowley said Edinburgh had been a target city of Dalata for some time.

“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,” he said. “We will continue to seek out further opportunities in our target markets.”

The Amsterdam hotel, meanwhile, will be rebranded to Clayton Hotel Amsterdam American, with Dalata planning to invest about €4.5 million in the hotel, including reducing its carbon footprint. The landmark hotel has already undergone a €14.5 million renovation since 2020.