After acquiring the 65,350 sq ft gross office block off Lothian Road last year, Whitbread has been preparing a planning application to change the use of the building to a hotel, which was submitted to Edinburgh City Council on May 2.
The plans involve the conversion of the existing building and rear extension of the 1980s office into a latest format Premier Inn hotel with a ground floor restaurant and bar.
The Capital House Premier Inn is expected to generate an additional £8.1 million per year in visitor expenditure through the external spending of more than 56,000 guests which are predicted to stay at the hotel every year. Half of this external expenditure is anticipated to be spent supporting city centre businesses.