Proposals for the site, which also include a restaurant and gym, have been submitted to the City Council for approval.
Located on Edinburgh's Queen Street, the aparthotel will sit within the city's New Town area - a designated UNESCO World Heritage Site.
A SACO spokesman said: "Our proposed redevelopment of Erskine House would result in the provision of high-quality, serviced apartments in a central Edinburgh location which we believe will be popular with business and leisure travellers alike, and the creation of new jobs.
“We hope that our application will prove successful, and that we can realise our long-held ambition of opening our own property in Edinburgh."
The plans follow a surge in demand for accommodation in Edinburgh, with an additional 15m foreign visitors expected over the next five years as a result of new EasyJet and Air Canada flight routes.
A number of major hotel developments have been proposed in the city, including a controversial 12-story ‘ribbon’ hotel, a 150-room site beneath Edinburgh castle and plans to convert a former chapel in to a four-star boutique hotel.
Room rates in the city are some of the highest in Europe this August due to increased demand from the Edinburgh Festival Fringe and International Festival.