For years a piece of derelict land near Waverley Station lay untouched. The unsightly gap, nestled between Craig’s Close and the City Arts Centre, eventually faded into the background. Now the site is home to Edinburgh’s newest boutique hotel.

Having opened in August, in the heart of the city’s world heritage site, the eight-storey Market Street Hotel has won architectural plaudits for the way it moulded itself to the long-deserted space.

Designed by FG Stijl, whose portfolio focuses on luxury hotels throughout Europe, the hotel is home to 98 rooms, each taking in unique views of Old Town, and a rooftop bar that promises to become a popular haunt.

Blending in rather than sticking out, conscious of its historical surroundings, the hotel dodges the lavish grand foyer which form the focal point of most up-scale hotels.

Instead, Market Street has opted for a minimalist, almost non-descript, entrance that features a fireplace, a few chairs and no reception – guests have to travel to the seventh floor to check in.

Also on the seventh floor is the hotel’s main feature, the Nor Loft.

Named after the Nor Loch, which once filled the space now known as Princes Street Gardens between the 15th and 17th century, the loft transforms from a trendy restaurant hub, serving up breakfast small plates and afternoon tea throughout the day, to a vibrant rooftop bar best enjoyed as the sun goes down.

While Market Street was built to fit into a narrow gap site, one gets the impression the Nor Loft may not have such an issue in becoming part of the fabric of Edinburgh nightlife.

The champagne bar offers more than 20 labels featured on its specialised Champagne Table, as well as a variety of spirits for other tastes, all with a stunning panoramic backdrop of the famous landmarks, including Edinburgh Castle, the Scott Monument, Princes Street Gardens and Calton Hill.

As well as enjoying the view from the comfort of a host of cosy chairs and dens, guests can also enjoy the views on two outdoor terraces connected to the lounge.

The hotel tries to pay homage to the capital and Scotland throughout, with the lobby and hallways having bursts of traditional tartans and heritage fabrics dotted around.

The rooms are divided by oak shutters and decorated with contemporary furnishings and framed photographs of old Edinburgh being homage to the site’s history in every room.

Each room is unique in that due to the small gap site the hotel was built in they have been specifically designed to offer the best possible view of the city.

“It’s extremely exciting to be working in a hotel property that brings a new level of understated luxury, bold design and edge to the market,” said general manager Jill Darling. “Not only is the hotel in an unbeatable location, but the interiors are unique. We’re thrilled to open our doors and welcome locals and visitors alike.”