The city of Edinburgh confirmed on Thursday during the MIPIM trade fair in Cannes that a deal will be signed with the European family hotel chain Motel One for the development of a 208-room hotel in the heart of the city.

The scheme is in line with the expansion strategy of the fast-growing operator of budget hotels which is seeking to increase its foothold in key European centres. This will become the chain's first hotel outside Germany and Austria.

Edinburgh city council is also said to be facilitating interest in a second Motel One location within the city. 'With business tourism on the rise and accolades such as Tripadvisor's most recent award, Edinburgh is looking forward to exciting months ahead,' said Steve McGavin, head of Physical Development at the City of Edinburgh Council.

The city council also confirmed that a historic building in Edinburgh is now under offer. Once the home of The Scotsman newspaper, the listed property in the city centre was marketed by Jones Lang LaSalle before being snapped up as a prime development opportunity. It is believed that a number of offers were received at closing with competitive target terms met. The site is intended to be developed into an apart-hotel.

McGavin continued: 'This news breathes new life into one of the city's most iconic buildings - demonstrating yet again the ways in which Edinburgh continues to regenerate. A purchaser has now been identified and the legal process will commence shortly.'