Co Tyrone construction group McAleer & Rushe has commenced work on a new £95 million hotel development in Edinburgh.
The new project at 60 Morrison Street will see the Cookstown-based developer transform an office building into a new 256-bedroom four-star Clayton Hotel leased to the group’s longstanding business partner Dalata.
Previously home to Scottish Widows Investment Partnership and later Aberdeen Group, the building is located in Edinburgh’s Exchange District.
McAleer & Rushe has confirmed its development arm MRP has secured funding with AIB to allow the project to commence.
The Co Tyrone group’s contractor arm will carry out the work in the six-storey office building, which will see it the structure retained and stripped back to its frame before the addition of three new storeys.
The result will be a contemporary nine-storey hotel complete with restaurant, bar, gym and business facilities.
“The commencement of construction, alongside the support of Dalata as operator and AIB as funding partner, represents an important step forward for this development,” said MRP development director Anugus Monteith.
“Edinburgh continues to demonstrate strong fundamentals as a hotel market, underpinned by a vibrant tourism sector, a growing conference market and a resilient business economy.”
Mark Diamond, a senior director at McAleer & Rushe, said: “Building on our extensive experience in delivering high-quality hotel developments and complex city-centre regeneration projects, this project demonstrates how existing buildings can be successfully repurposed to create modern, sustainable developments that meet changing market needs supporting the continued regeneration of city centres.”