Bank to the future for eyesore

ONE of Edinburgh's ugliest buildings is set to be demolished and replaced with a new hotel.

Halifax Bank of Scotland (HBoS) this morning submitted a planning application to turn the former Lothian Regional Council headquarters on George IV Bridge into a 136-bedroom complex. The design includes space for restaurants, bars, shops and a bank.

The former council office, which was used most recently by Scottish Parliament staff, will be torn down if councillors approve the HBoS application.

The bank will not reveal how much it is prepared to pay for the project, but it is likely to cost the institution at least £7 million to purchase and redevelop the site. If the bank's plans are rubber-stamped by the council, the hotel could open in 2008.

Edinburgh architect Allan Murray, who designed the Tun building in Holyrood Road, has drawn up designs for the site, with the Kilmartin Property Group as the development consultants.

The planned hotel was described as "cosmopolitan and contemporary" by Mr Murray, who now hopes to win over heritage groups and Old Town community groups with his design, exclusively revealed to the Evening News today.

"This is a wonderful opportunity to bring back much needed life to this part of the city," he said. "It is a modern building, but it is still within the scale of the Old Town and will become part of the fabric of the city. A hotel is the most appropriate building we could create in this area and, having spent a year on the designs, we look forward to positive discussions with all relevant parties."

The designs include a number of entrances into the complex, as well as an archway on to Victoria Terrace. Three disused closes on the High Street will also be reopened, leading to a large courtyard in the centre of the building.

HBoS has described talks with the council about the site as positive and claims to have the interest of several large companies as potential investors.

Ian Robertson, managing director at Bank of Scotland Corporate, said: "Our main aim is to build something far more in keeping with its surroundings, bringing this important space back into the public realm. The new building would be a dignified addition to Edinburgh's renowned World Heritage Site."

Nick Ball, Scottish development director at Kilmartin Property Group, added: "We are delighted to be working with Bank of Scotland to deliver this impressive new addition to the city."

City leader Donald Anderson has already insisted the "horrible" existing building, which was completed in 1970, is replaced as a condition of the sale of the site.

The deal could also generate a windfall for the council, as it will win 50 per cent of the profits once HBoS makes a 15 per cent return on its investment.