Edinburgh hotels: Former Debenhams store to become luxury brand Zedwell's first hotel in Scotland

A previous scheme for a 210-bedroom up-market hotel fell through last year, but now the nine-floor building is set to be turned into a first hotel in Scotland for luxury brand Zedwell.

The store will be turned into Zedwell’s first hotel in Scotland. Picture: Jeff J Mitchell/Getty Images.

The hotel will feature guest rooms which are described as "cocoons", with noise-reducing walls, floors and doors, along with warm ambient lighting. Zedwell's website says: "Sleep isn't a luxury. It's a state of mind we must embrace to live better. Zedwell is a lifestyle concept designed to promote sleep, positive health and wellbeing."

Parent company Criterion Capital, which is headed by billionaire investor Asif Aziz, has bought the 116,500sqft site at 109-122 Princes Street for an undisclosed sum. There are already three Zedwell hotels in London, including one at Piccadilly Circus. And a further hotel is set to open in Manchester in 2026. The firm plans eight more hotels before 2026, bringing the total number in its portfolio to 12.

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.”

The Debenhams store has been vacant since the company closed down in May 2021 after 243 years’ trading. The site was all set for a £50 million transformation into a 210-bedroom luxury hotel with a rooftop bar/restaurant, and cafe and wine bar on the lower levels, along with an urban spa and wellness centre.

Planning permission was granted. But owners Legal & General scrapped the scheme in September 2023 and instead put the property up for sale. It is said that problems getting partial closure of Princes Street to allow construction work was part of the reason for the decision, although soaring costs in the construction industry are also thought to have been a factor.

Kerr Young, of property agents JLL, said: “We are delighted to have advised on the sale of 109 Princes Street. Edinburgh remains the best performing hotel market in Europe and JLL are very excited to be facilitating the entry of a new hotel concept such as Zedwell to the market which will support the adaptive reuse of a strategically important property located in the heart of the city centre.”