Although the £200 million scheme, backed by Tiger Developments, still requires approval from the Scottish Government, it is a significant step forward.
The Haymarket project, which also includes firms CDA and Sutherland Hussey, will provide the city with a five-star 192-bedroom hotel, a 245-bedroom Travelodge, and 33,000m2 of office space.
Tiger’s managing director John Nesbitt said: ‘The Haymarket will be of immense benefit to Edinburgh by transforming a site which has remained derelict for 40 years into a vibrant new quarter.
‘The project will create in the region of 400 jobs during construction, and another 1,600 following completion, while injecting additional £8.75 million visitor spending in Edinburgh.’
Work is expected to begin later this year, with completion expected in 2012.