London hotel The Hoxton, created by the co-founder of Pret a Manger, has unveiled plans to expand across the UK as a chain.
The Hoxton, opened in September 2006 by Sinclair Beecham, is a "luxury budget" hotel that uses a budget airline-style pricing policy, selling off rooms for as little as £1 a night for advance bookings and then going up to £179 a night.
The next Hoxton branded hotel will be built on Edinburgh's Royal Mile, followed by properties in Glasgow, Leeds, Bristol and Birmingham.
Beecham expects to have five hotels open within four years, and be working towards the opening of another five.
The properties will retain the Hoxton branding - named after the location of the London hotel - rather than the particular city they are in.
The Edinburgh hotel will be built on the site of a former department store that has been empty since a fire in 2001.
Subject to planning consent, work will begin in the new year with a view to opening at the end of 2009.
A spokesman for The Hoxton said: "We consider Scotland to be a very important gateway to the highlands and lowlands and the location in Edinburgh is right in the heart of everything. The company has always wanted to expand but it's always been a case of finding the right site- the fact that property prices have fallen is an added bonus."
By Gemma Sharkey
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