Investment manager M&G has committed £100 million to deliver a new 351-room Hyatt Centric hotel in Edinburgh, marking the final stage of a £350 million regeneration project at the city’s Haymarket Estate.

Financed through M&G’s With-Profits Fund, the hotel is expected to generate up to 450 construction jobs alongside 110 permanent roles once completed. Construction is scheduled for completion in 2028, concluding years of work to transform the central site into a major business and hospitality hub. The wider Haymarket district already houses corporate tenants including Deloitte, Baillie Gifford, Dentons, Shoosmiths and Shepherd & Wedderburn, alongside retail and public spaces.

Edinburgh attracts over five million annual visitors, driven by tourism, international events and transport links. Situated beside Haymarket Station and near the Edinburgh International Conference Centre, the Foster + Partners-designed hotel aims to capture ongoing demand from both corporate and leisure travellers.

Martin Towns, Head of Global Real Estate, M&G Real Estate, said: “This investment completes a major new district for Edinburgh, combining high-quality design, a strong operating partner and an exceptional location. M&G is a significant investor in Scotland and projects like this show how we deploy capital into high conviction real assets that support the long-term strength of both the city and our portfolio, while adding momentum to the Haymarket area and one of the UK’s most popular visitor destinations.”

Ciaran Mulligan, Chief Investment Officer, M&G Life, said: “Haymarket is a powerful example of how long-term savings can be put to work in the real economy, helping to shape communities, support jobs and create long-term value for customers. Our research shows people are more engaged with their pensions when they can see the impact their savings are having, and investments like this bring that connection to life. By supporting regeneration and job creation, investments such as Haymarket can help build momentum in the local economy, contributing to the area’s transformation into a thriving destination while supporting long-term growth and opportunity.”

Anna Corkill, Regional Vice President Development, Hyatt, said: “Hyatt Centric Haymarket Edinburgh reflects Hyatt’s strong confidence in the UK as a growth market, particularly in internationally recognised regional cities with distinct cultural identities and year-round demand. The Hyatt Centric brand continues to grow rapidly within Hyatt’s Classics portfolio, with standout locations including Madrid, Milan, Venice and Istanbul, and we are excited that the brand is contributing to the area’s ongoing regeneration while creating a vibrant new destination for visitors and the local community alike.”

Recent consumer research commissioned by M&G indicates that nearly one in three people in Scotland would feel more inclined to stay in their local area long term if they witnessed regional regeneration projects.