German-based budget hotel group Motel One is to launch its first UK property in Edinburgh at a new £45m mixed use development next summer.

Property developers Chris Stewart Group have acquired the former buildings of Edinburgh City Council’s Economic Development department on Market Street at which Motel One will open a £25m, 208-bedroom hotel.

The hotel will also feature 30,000 sq ft of residential space, including self catering apartments, six offices and two restaurants.
Motel One, which operates 32 hotels in Germany plus two currently being developed in Austria, plans to open its first UK property in summer 2012.