Construction work has started on an impressive new 157-bedroom hotel in the Haymarket area of Edinburgh after property development company, S Harrison, appointed Ogilvie Construction as the principal contractor on the project.

The development will see a 1970s office building, which is currently known as Osborne House, transformed into a new hotel, complete with a residents’ bar, restaurant and lounge area on the ground floor and an outdoor seating terrace. Following part demolition of the existing building, two new accommodation wings will be built to the rear, together with a new storey above the existing building.

Late last year, S Harrison announced a deal with European hotel group MEININGER Hotels to operate the hotel, which is set to open in spring 2026. MEININGER Hotels, a key player in the hybrid hotel market, operates 36 hotels across 26 European cities. Each hotel features its own unique design, offering flexible and affordable modern accommodation.

S Harrison acquired Osborne House in 2018 and worked with Edinburgh based architect, Comprehensive Design Architects on the transformational plans, incorporating impressive green credentials including the retention of the majority of the existing building structure.

The building is located just west of Edinburgh city centre, a few minutes’ walk from Haymarket railway station and tram stop and easy walking distance from Princess Street. S Harrison will hold the completed investment, further strengthening the company’s property portfolio.

Andrew Wharton, from S Harrison, said: “Appointing Ogilvie Construction to deliver another landmark project in Edinburgh and seeing work start is obviously a key milestone for this development and follows several years of diligent work to secure both planning permission and the right occupier for the scheme. We’re now looking forward to seeing our plans progress on site over the coming months.”

Grier Edmead, operations director at Ogilvie Construction, said: “We are proud to be working with S Harrison on this project which has energy-efficiency and strong sustainability credentials at the heart of its design. Our team brings unrivalled specialist knowledge of the hotel and leisure sector, and we look forward to successfully delivering a first-class destination in the city, making both S Harrison’s and MEININGER Hotels’ vision for this building a reality.”

S Harrison has made a substantial investment in Edinburgh in recent years and this latest hotel project follows the company delivering the landmark boutique hotel for Malmaison in the heart of Edinburgh’s New Town. The work saw the Grade A listed Buchan House, on the north-west corner of St Andrew Square, converted into a stylish 72-bedroom hotel complete with Malmaison’s renowned Chez Mal Bar and Brasserie.

The developer is also currently working on two PBSA schemes consisting of 64 studio apartments on East Newington Place, off Newington Road, and 76 studios within the historic surroundings of Canongate, just behind the Royal Mile.

In addition, the planning committee recently confirmed they are minded to grant planning consent for a major new £80 million mixed-use development in a prime waterfront location in Leith. The development, known as Ocean Point 2, will comprise of residential and PBSA, along with commercial, co-working and amenity space.