Bosses at the Scotsman Hotel are planning to expand the hotel’s facilities, despite warning staff of job cuts and redundancies last month.
In March, employees at the five-star boutique were told of looming redundancies and the Edinburgh Evening News reported how workers received a letter to state their wages may not be paid on time because of a “challenging trading period”.
Despite this, the hotel is now gearing up for a ten bedroom extension, in a bid to restructure the business and make the boutique more efficient.
It’s reported that architects are currently drawing up plans, but in order for the extension to go ahead some facilities, such as the gym or spa, may need to be axed.
The hotel has a 160-strong workforce and is part of the JJW Hotels and Resorts group, which is part of MBI International.
Speaking to Edinburgh Evening News, a spokeswoman said: “The redundancies are designed to make the Scotsman more efficient to deal with the new challenges, including the changes in the Edinburgh hotel scene as international tourists now form the highest segment of the market.
“There will be a reduction in the workforce that will reach most departments but in due course, and as we strive to update and expand through the proposed introduction of more accommodation space and more facilities, there may be an opportunity for new jobs in the future.
“The ongoing changes are part of restructuring the hotel and are intended to update and improve our historic venture.”
The hotel – which has 56 rooms and 12 suites – was opened in 2001 by the newly formed Scotsman Hotel Group.