A former lighthouse ship will be converted into a luxury floating hotel and events venue after the Royal Yacht Britannia Trust secured financing support for the £5m conversion.
The ship, Fingal, will be based alongside the royal yacht Britannia, in Leith, Edinburgh, helping the trust meet demand for corporate hospitality events.
Its luxury cabins will be named after Stevenson lighthouses and a double height ballroom will be able to host up to 80 guests.
Britannia cannot currently host daytime events as the trust's constitution requires it to be open to the public.
Bob Downie, chief executive of Royal Yacht Britannia Trust, said: "Developing our own hotel has been a long-held ambition, providing organic growth and, whilst generating an income stream that is not reliant on visitors to Britannia, having our own accommodation on Fingal is also expected to help increase the number of evening events we hold on the royal yacht."
The funding has been supplied by Santander Corporate and Commercial.
Kirsty Johnston, relationship director at Santander Corporate & Commercial, said: "Britannia is one of the most famous ships in the world, and we are absolutely delighted to be working with such a prestigious client."