Billionaire plans to turn former Debenhams on Edinburgh's Princes Street into 'luxury' hotel

A former Debenhams department store in Edinburgh city centre is to be converted into a first-of-its-kind hotel in Scotland by a billionaire owner.

Zedwell Hotels is set to open its first hotel on the nine-storey Princes Street with the lot lying vacant after the retail outlet closed in 2021 after over 240 years of service.

Criterion Capital, owned by billionaire investor Asif Aziz, has purchased the 116,500-square foot site to add to the firm’s existing three London hotels.

Zedwell aims to bring its “cocoon” rooms – designed with noise-reducing walls, floors, and doors – to Edinburgh after a previous application for a hotel fell through last year.

A £50m transformation had been earmarked by Legal and General and approved by City of Edinburgh Council planners.

Mr Aziz said: “Opening our first hotel in Scotland is a significant step in our ambitious UK-wide expansion of our unique Zedwell hotel brand.

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

“This project represents a fantastic addition to our committed pipeline of 22 hotels with over 7,000 rooms.”

Kerr Young of JLL, the property agents who advised on the sale, said: “Edinburgh remains the best performing hotel market in Europe.

“We are very excited to facilitate the entry of a new hotel concept such as Zedwell, which will support the adaptive reuse of a strategically important property located in the heart of the city centre.”