Boutique hotel operator Hotel du Vin has acquired new sites in Edinburgh and Newcastle.
Continuing the group's tradition of transforming historic sites into hotels, the 47-bedroom Edinburgh property was originally part of the city's Royal Infirmary hospital.
It will undergo an £8.5m renovation in addition to its £2m price tag and is due to open in early 2008.
Contracts are also due to be signed for a former ironmongery on Newcastle's Quayside, which will be developed into a 41-bedroom hotel.
Hotel du Vin's chief executive Robert Cook said he is now looking for properties in Aberdeen and St Andrews, but quashed rumours of any interest in Inverness.
The announcement follows Hotel du Vin's acquisition of One Devonshire Gardens in Glasgow last week for £9m.