A FOUR-STAR hotel on the fringes of Edinburgh city centre is to be transformed into budget accommodation as part of a major expansion drive north of the Border by hotel operator Travelodge.
The Menzies Belford Hotel, on Belford Road, has been snapped up by Travelodge for an undisclosed sum.
Yesterday's sale marks the end of an era for the building, which has operated as a luxury hotel for almost 30 years.
A magnet for showbiz cele
brities in its 1980s heyday, the venue was originally known as the Dragonara and was also owned by the Hilton chain before it became part of the Menzies Belford stable in 2001.
The 146-bedroom property is to undergo a £2.3 million refurbishment by the budget hotel operator and will reopen under the Travelodge name in June.
A spokesman for Menzies Hotels said: "We have exchanged contracts with Travelodge for the Menzies Belford Hotel. Travelodge run a very different type of operation to us so there is likely to be some major changes."
The hotel's staff were briefed in a meeting yesterday, but Travelodge told The Scotsman it could not rule out making redundancies in the future.
Greg Dawson, spokesman for the budget hotel firm, said: "This is our eighth Travelodge in Edinburgh. We are very keen to increase our presence in Scotland, especially ahead of events such as the Commonwealth Games. Edinburgh is our second-biggest tourism market after London."
Travelodge already has four other hotels operating in the Scottish capital, with three more planned at Haymarket, St Margaret's and Edinburgh airport.
Sinead Guerin, VisitScotland regional director, said: "Edinburgh prides itself on being able to offer something for every budget and this new Travelodge development will provide visitors with another option when looking for accommodation.
"In order for Edinburgh to maintain its position as a top tourism destination, we must continue to ensure potential visitors have choice, be it at the luxury end of the market or for budget holidays."
Separately, the hotel has been closed since Monday due to a problem with some of its gas appliances, forcing hundreds of guests to be rehoused in hotels across Edinburgh. It is due to reopen at the weekend.
• Global hotel operator Marriott International said yesterday that its first-quarter profit had dropped 34 per cent as the slowing US economy took a toll on its hotels.
The results were in line with Wall Street expectations, but the hotel operator lowered its forecast for the full year.
The hotel chain said it earned $121 million for the 12 weeks between 29 December and 21 March – down from the $182m the company earned in the first quarter of 2007.
