A TOWERING 16-storey hotel visible from across Edinburgh will form the centrepiece of a £200 million redevelopment for Haymarket, under plans revealed today.

Just a day after a massive planning application was unveiled for the major regeneration of Leith Docks, the first images have been released of the hotel development which will change the face of the city centre. Work could start on "The Haymarket" next year with completion by 2012.

Under Irish developer Tiger's plans, the leaf-shaped five-star hotel, roughly the height of the Balmoral, will look down on Haymarket Station from the former Morrison Street goods yard.

The glass and stone-fronted building would be visible from miles around.

Luxury hotel chain InterContinental – which has only one hotel in the UK – is set to run the 180-room complex, complete with a swimming pool and gym near the top floor where users will have views of Edinburgh Castle.

A 246-bed Travelodge is planned next to the building, alongside three office complexes.

A street would run through the centre of the site, extending from Morrison Street to Dalry Road, creating a pedestrian link to the railway station and the opportunity for cafes and bars.

Award-winning Edinburgh architect Richard Murphy was tasked with designing the main Haymarket hotel, which he said would be the city's third "railway hotel", alongside the Balmoral and Caledonian Hilton.

He also said the entire development would provide a "major shot-in-the-arm" for the area.

"The Haymarket site deserves a building of significance and we believe the hotel will redefine Haymarket in the same way as the Balmoral transformed the Waverley Valley and the Caledonian Hotel enhanced the west end of Edinburgh," he said.

"The hotel will act as a focal point and lantern to the western approach into the city centre.

"The feedback has been encouraging. The Haymarket will add vibrancy to an area which has been neglected for too long."

Mr Murphy said the hotel would be a "marker" for the start of the city centre, but he also insisted the building would not be intrusive or block historic views.

Previous plans for the area drawn up by EDI, the council's development company, included a massive shopping arcade, offices, cafes, bars and restaurants. The scheme received planning consent, but was sent back to the drawing board last year.

EDI was forced to put the site on the market because of the council's decision to use the firm's assets to help finance a massive equal pay settlement.

The sale sparked a massive bidding war with a final price thought to be in the region of £41.5m – way over the £23m asking price.

The entire Haymarket area is to be transformed in the coming years, with a giant glass roof likely to be built over a new public concourse at the station. The council wants to create better access for trains, buses, taxis and trams.

Tiger embarked on an extensive consultation process before submitting its plans for the gap site.

If councillors now give the go-ahead, the firm hopes to begin work on the scheme in 2008 .

John Nesbitt, managing director of Tiger, said: "We have been pleased with the positive reaction to the proposals.

"Tiger has designed a scheme which will not only benefit the local area, but the city of Edinburgh as a whole. The office space will act as a natural extension to the Exchange district, while the hotels will address a major shortage of rooms in the Scottish capital."

Last year, experts predicted the city would need more than 4000 more hotel rooms over the next ten years.

Under Tiger's plans, more than 335,000 square feet of office space will also be built.

The scheme also includes an underground car park. A landscape architect will be involved in designing the public area.

The Haymarket is expected to attract almost 1600 additional workers once completed and create 400 construction jobs.

Property experts today predicted the new offices would be snapped up.

Cameron Stott, director of Jones Lang LaSalle Edinburgh, said: "The Haymarket is an exciting proposition for office occupiers, providing a natural extension to the Exchange financial district."

The site closed as a goods yard more than 40 years ago and has been one of the city's longest-lasting gap sites.

It was briefly considered as a possible site for the Scottish Parliament building, and plans for shops, offices, hotels and cafes have prompted many objections.

Concerns from residents in neighbouring Dalry mean the design of the Travelodge will be "stepped back" from the colonies to ensure as much privacy as possible for local homeowners.

Haymarket Station set for transformation
HAYMARKET Station is also to be transformed as part of a separate scheme to create a new transport hub.

The historic building is likely to see a giant glass roof built over a new public concourse. Moves to demolish the grade A-listed station and neighbouring Ryries Bar to make way for the transport interchange were recently abandoned after failing to win public support.

The controversial scheme was one of three options put forward by the council to transform the junction and improve access.

A public consultation found overwhelming support for the much-needed revamp of station facilities. But just 15 per cent of respondents were in favour of demolishing the 164-year-old station.

Council officials have now backed Option A, which is seen as a mix of the old and the new. Costing between £150 million and £200m, it would see the station and Ryries retained but the land around them developed.

A ground-level concourse would form the "focal point" of the new interchange, with a glass roof extending over the tracks and platforms.

With almost four million people passing through each year, Haymarket has become one of the busiest train stations in the country.

The preferred option for Haymarket will be known when the feasibility study is completed in December.