A PLAN to create a hotel “hub” with shops, sky bar and spa has been unveiled for the Scottish capital.

Legal & General announced on behalf of the L&G UK Property Fund that it will invest over £50 million into the major regeneration project to transform a site currently occupied by Debenhams in Princes Street.

The proposals would create a new hotel and city centre hub including shopping, dining, hospitality, leisure and event space.

READ MORE: Highland hotel deal provides boost for sector

“Currently an under-utilised retail premises, Legal & General’s vision will transform 109-112 Princes Street, a building of significant architectural heritage and history in Edinburgh, into a vibrant destination, attracting both residents and tourists to make use of the new facilities”, the company said.

“With unparalleled views directly onto Princes Street Gardens and Edinburgh Castle, Legal & General’s plans for Princes Street will create a major new destination in Edinburgh, delivering the footfall Princes Street needs to continue to thrive,” it added.

It is envisaged that the plans will help realise the council’s long-held ambitions to create a café culture in one of Edinburgh’s most famous streets, the firm said.

The Upper Upscale Hotel will “have its own independent identity, reflecting the energy, culture and history of Edinburgh, and operate utilising the best available local produce for the food and drink offer”.