Union Hanover Securities has received planning permission for a £35m boutique Urban Villa hotel by the Union Canal Basin in Edinburgh.
The property on Freer Street has been designed by New York-based architect Grzywinski + Pons with Edinburgh-based Michael Laird Architects.
It will feature 179 executive villas (studios), 11 master villas (1 beds) and 4 ‘RockStar' villa's (2 bed penthouses overlooking the union canal basin with views over the castle).
Other facilities will include 24-hour reception/concierge, lounge and restaurant with canal-side outdoor dining as well as a gym.
Union Hanover managing director Eric Jafari described the hotel as a "benchmark" asset for the company.
He said: "Edinburgh is second only to London in potential for our Urban Villa brand with its mix of corporate and leisure travel. Coupled with its myriad of excellent universities it lends itself to our millennial appeal of our concept.
"We anticipate that this hotel will be the Urban Villa that defines the brand and sets the standard for all future urban villas."
Work is expected to commence in October, but no completion date has been offered at this time.
Union Hanover's first Urban Villa in West London was launched in January. The company said that the 100-suite Urban Villa GWQ is already trading "well ahead" of the group's expectations. Union Hanover is also aiming to open an Urban Villa in Aberdeen.
City of Edinburgh Council has also granted outline planning consent for a mixed-use masterplan containing residential, leisure and office uses in which the Urban Villa will sit and will be part of a larger regeneration of the Fountainbridge district. The £120m scheme is being led by Amco Developments.