Criterion Capital has announced plans to transform the former Debenhams building on Princes Street in Edinburgh into its first hotel under the Zedwell brand in Scotland.

This comes following the acquisition of the 116,500ft² property at 109-112 Princes Street for an undisclosed amount, according to the company’s LinkedIn post.

Criterion Capital founder and CEO Asif Aziz said: "Opening our first hotel in Scotland is a significant step in our ambitious UK-wide expansion of our unique Zedwell hotel brand. Edinburgh’s rich history, cultural significance and strong tourism sector make it an ideal location for Zedwell.

“This project represents a fantastic addition to our committed pipeline of 22 hotels with over 7,000 rooms that, together with our expanding residential and commercial portfolios, will see our AUM exceed £6bn.”

The upcoming Zedwell hotel will feature the brand's signature 'cocoons' as bedrooms, including noise-reducing walls, floors and doors, as well as warm lighting.

JLL Capital Markets, UK National Hotels Transactions head Kerr Young said: “We are delighted to have advised on the sale of 109 Princes Street. Edinburgh remains the best-performing hotel market in Europe and JLL is very excited to be facilitating the entry of a new hotel concept such as Zedwell to the market which will support the adaptive reuse of a strategically important property located in the heart of the city centre.”

The Edinburgh location will be the fourth Zedwell hotel in the UK, joining three existing London sites, including one at Piccadilly Circus.

The expansion plan includes a new hotel opening in Manchester in 2026, with Criterion aiming to add eight more hotels to its portfolio by the same year, taking the total to 12 hotels.

The announcement follows the approval of planning permission by Westminster City Council for Criterion's project at 77 Park Lane, which will also be developed under the Zedwell Hotels brand, this month.