A new five-star Sofitel hotel is to be built as part of the £300m regeneration of the Caltongate area around Edinburgh's former New Street bus depot in the centre of the city.
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Once the whole development is completed, about 1500 jobs will be created.
There are almost 200 Sofitel hotels worldwide and a planning application for the development will be lodged shortly. It is hoped that it can be built and opened by 2010.
The plans for the hotel will include a minimum of 205 bedrooms including 20 suites and one apartment, a banqueting room and conference suite.
It will also house a restaurant and bar, and leisure spa facilities including a pool and beauty room.
The hotel will occupy a key position connecting Market Street and the Canongate.
Manish Chande of Mountgrange, the group behind the regeneration of the area said: "Accor is an international leader in the leisure sector and the Sofitel brand represents the height of five-star hotel hospitality.
"We believe it will be a major asset for Edinburgh and its future economic prosperity."
