EDINBURGH'S prestigious Caledonian Hotel is set to undergo a major expansion, creating 50 extra rooms.

The move was announced as work began on a separate £22 million renovation project, which will include the refurbishment of bedroom suites, external repairs and the creation of a new, glass-covered reception lounge in a disused central courtyard.

The plans will see an extension built on part of the hotel's car park area, creating 50 "superior" rooms. These are described as being "bigger and more luxurious" than a standard room but not as expensive as a full suite.

A further project will turn the hotel's existing leisure club into an "international-standard" spa.

It is not known how much of the car park will be taken up by the new development, but bosses have said the hotel will retain parking spaces at the building's rear.

General manager Willy Blattner said that the plans would ensure the landmark venue would become "one of the finest hotels in the world", and boost the total number of rooms to 280.

He added: "The Caledonian Hilton is an iconic landmark on Princes Street and, as with any structure of this age and stature, a certain amount of work is necessary to maintain the fibre of the building. The ongoing investment will see substantial work undertaken to the interior and exterior of the building and a programme of technical maintenance carried out.

"This is a major programme of activity and on completion the Caledonian Hilton will be one of the finest hotels in the world."

Earlier this month, the Evening News revealed plans to transform the five-star venue's triangular courtyard into a guest lounge and covered over with a new roof and skylight.

Proposals to overhaul of the ground-floor bar and restaurant were also revealed, with a new dining area and toilet block created on the ground floor overlooking the rear car park.

Today, business leaders welcomed the announcement of extra rooms at the hotel and said that the move would help attract more corporate guests to the Capital.

Graham Birse, deputy chief executive of the Edinburgh Chamber of Commerce, said: "This is great news for Edinburgh.

"We need to create more four and five-star hotel rooms in the city.

"There are a number of applications on the go to create new hotels, but we also need more projects of this nature.

The investment in the Caledonian Hilton comes on the back of the sale of the building to the Caledonian Operating Company last August.

Despite the sale, Hilton Hotels still retains a long-term management contract for the 251- bedroom hotel.

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