Prime Highlights:

• Whitbread has received planning approval to convert Capital House into a 195-bedroom Premier Inn, signaling its continued expansion in Edinburgh.
• The new hotel is expected to attract over 56,000 business and leisure guests annually, boosting local visitor spending.

Key Facts:

• The project involves a £21 million investmentto transform the 65,350 sq ft vacant office building into a modern hotel with a restaurant and bar.
• Whitbread acquired Capital House in late 2024and submitted the planning application in May 2025, with work starting immediately following approval.

Background:

Whitbread PLC, which owns the Premier Inn chain, has received approval from the City of Edinburgh Council to convert Capital House into a 195-bedroom Premier Inn. The company will invest £21 million to turn the 65,350 sq ft vacant office building into a modern hotel with a restaurant and bar on the ground floor.

The hotel is expected to welcome over 56,000 business and leisure guests each year, bringing in around £8.1 million in spending to local businesses once it is open. According to Whitbread, around half of this spending is anticipated to benefit city centre businesses, based on a nationwide customer study conducted in 2023.

Jill Anderson, Whitbread’s acquisitions manager for Scotland, highlighted the company’s strong presence in Edinburgh, where 14 Premier Inn hotels welcome a million visitors each year, contributing £32 million in annual external spending to the local economy.

She said that strong demand for Premier Inn rooms in Edinburgh is driving the company’s growth, including the project at Capital House in the city centre. The building is close to Edinburgh Castle, theatres, the International Conference Centre, and the Exchange District, making it ideal for both business and leisure visitors.

Whitbread purchased the property in late 2024 and applied for planning permission in May 2025. With approval now secured, work to convert it into a new hotel will begin immediately.