The 132-room, 615-bed hostel will continue to operate under its current name, Smart City Hostel, before being rebranded as Safestay Edinburgh in early 2016. An additional 81 en-suite bedrooms are leased to the University of Edinburgh from September to May but are available over the peak summer period.
The eight-floor property has a bar and a lounge with an outside courtyard and split-level terrace. It offers complimentary Wi-Fi in the communal areas, a laundry room, free luggage store, computer room and a library area.
The hostel has private twin and family rooms that come with plasma televisions and tea and coffee facilities. It has a number of four, six, eight and larger bunk bedded rooms with en-suites.
Public areas include a restaurant that serves a continental breakfast as well as snacks and meals.
Larry Lipman, chairman of Safestay, said that Edinburgh is a city that the company have wanted to target for a long time to gain additional presence and that he has high hopes for its latest purchase.
"We know the hostel well and it has an established presence on the hostel circuit and will therefore be another flagship site within our growing portfolio as we pursue our aim of developing a European network of Safestay hostels,” he said.