Artists impression of proposed BHS development.

Work to strip out the building could begin within just four weeks with the opening expected by 2019.

The 133 bedroom hotel will be topped by a restaurant with terrace creating spectacular views across Edinburgh’s Old Town, Castle and Princes Street Gardens.

The shopping space below will be revamped, while the Rose Street extension to the store will be demolished and a new building constructed with two ground-floor, glass fronted restaurants or retail units and the hotel entrance.

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Cllr Alex Lunn welcomed the decision: “This is one of the most exciting developments to come to the committee recently.