Tiger Developments has unveiled a £200m scheme to transform the last remaining development site in Edinburgh city centre.

The Irish developer has put forward proposals to develop two hotels and 335,000 sq ft (31,112 sq m) of retail and office space on the former Morrison Street Goods Yard in Haymarket.

The scheme, which has been designed by Richard Murphy, CDA and Sutherland Hussey, has been named The Haymarket and is one of the last major gap sites in central Edinburgh and is viewed as strategically important, being close to the city's Exchange financial district and adjacent to Haymarket Station, the second busiest in Scotland.

Tiger is in final negotiations with two leading hotel operators to occupy both proposed buildings. A planning application for the site is expected to be submitted to the City of Edinburgh Council in June and work could begin on site next year with completion due in 2012.

John Nesbitt, chief executive officer of Tiger Developments, said: " We believe our proposals for a mixed-use development incorporating two hotels, Grade-A office space and retail and leisure facilities, will benefit from The Haymarket's excellent location close to The Exchange financial district and Haymarket Station. We are committed to consulting with Edinburgh residents to ensure this development is appropriate for this neglected site. This is a work in progress and will undoubtedly evolve and change during the consultation.

Richard Murphy added: ‘The Haymarket site deserves a building of significance. The four-star hotel will re-define Haymarket in the same way The Balmoral transformed the Waverley Valley and the Caledonian Hotel enhanced the West End of Edinburgh. The hotel will act as a focal point and lantern to the western approach into of the city centre.’