The hotel collection, which is part of The Travel Corporation group of travel companies, is to renovate 100 Princes Street in the centre of the Scottish capital.
100 Princes Street, which offers views across to Edinburgh Castle, will become Red Carnation’s 19th property around the world when it opens next year as a 30-room hotel.
Red Carnation said the new Edinburgh hotel will “replicate the boutique atmosphere” of sister property Hotel 41 located close to Buckingham Palace in London.
Jonathan Raggett, managing director of Red Carnation Hotels, said: “It has been a dream of ours to open a hotel in Edinburgh for some time, and with the best address in the city, it was well worth the wait.
“Guests at 100 Princes Street will enjoy everything that makes Red Carnation so special, from our individually designed interiors to the signature dishes of our president and founder Beatrice Tollman, delivered with passionate service, generous hospitality and a genuine commitment to the environment and communities in which we operate.”
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