Princes Street Fire: Developer behind plans for fire-ravaged Debenhams store issues statement

The 116,500sqft site was acquired by real-estate owner Criterion Capital for an undisclosed sum after previous plans for a luxury boutique hotel were ditched in 2023.

Criterion Capital had announced plans to turn it into its first Zedwell hotel in Scotland, consisting of 328 bedrooms plus 345 “capsules” or pods, with retail on the ground floor.

The company, which has a nine billion dollar property portfolio across the UK and Europe, is headed by billionaire businessman and landlord Asif Aziz.

Firefighters were sent to the disused site at the historic building at about 2.50am and worked through the early hours to bring the flames under control.

The full extent of the damage is not yet known, however images of the burnt-out building show the top two floors and the roof gutted by the flames.

Criterion Capital has now released a statement in response to the fire.

A spokesperson said: “In respect of the fire at the former Debenhams building on Princes Street, Edinburgh, in the early hours of this morning, our immediate priority is the safety of everyone involved.

“There have been no reported injuries, and we are very grateful to the emergency services for their swift response and professionalism.

“This building is an important and historic part of Edinburgh’s city centre, and we continue to liaise with the emergency services and relevant authorities.”

Announcing the plans for the hotel at the time, Mr Aziz said: "Opening our first hotel in Scotland is a significant step in our ambitious UK-wide expansion."

Planning permission was granted in March 2025 and the final go-ahead was given in February this year after agreement was reached on developer contributions.

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