SCOTLAND is to have its first "boatique" hotel in a converted lighthouse service ship bought by the trust that owns the Royal Yacht Britannia.

Britannia said the deal for the Windsor Castle represented a near £1 million investment, with the classically designed ship being converted into a 25 bedroom luxury floating hotel.

The ship will be berthed next to Britannia in Edinburgh's port of Leith. Launched in August 1963, the Windsor Castle was the last ship built by Blythswood Shipbuilding Company, Glasgow, and previously used by the Northern Lighthouse Board (NLB) under the name Fingal.

The vessel was Leith registered but spent 30 years working out of Oban, and was also based in Stromness, Orkney, for six years. At 239ft long, the Windsor Castle is nearly two-thirds of the size of Britannia.

The vessel was sold by the NLB in 2000 to Tamahine Shipping and has been maintained to high standards at a berth on the River Fal in Cornwall.

The ship is scheduled to arrive in Leith during the last week in August and undergo an 18-month conversion, scheduled to open in Spring 2016. Its owners said developing a floating hotel represents "natural organic growth for Britannia".

Britannia, which conveyed the Queen and the royal family over a million miles around the world before berthed in Edinburgh in 1998, attracts 300,000 visitors a year.

It is has been Scotland's best visitor attraction for nine years in a row and is the UK's Number One attraction by Trip Advisor this year.

Bob Downie, Britannia's chief executive, said: "After many years of searching for the right ship, we are delighted that we have been able to acquire this iconic vessel and look forward to opening Scotland's first boatique hotel.

"As a youngster growing up in Oban I have very fond memories of seeing the Fingal.

"I am delighted that the long-term future of another much loved classic vessel has been secured."