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The Edinburgh International Conference Centre (EICC) is set to get an £85 million extension after councillors approved the scheme yesterday (December 9th).
One of Scotland's premier venues, the EICC could generate an extra £50 million a year for the capital's economy once the refurbishment is complete.
The project will see the banqueting facilities extended to cater for up to 1,600 people and a moving floor added to the auditorium to allow the space to be converted for exhibition and banqueting use.
Tom Buchanan, economic development convener at the City of Edinburgh Council, said: "The EICC has been central to the regeneration of Edinburgh's West End and it is therefore fitting that it will play such a major role in developing the last vacant site in the Exchange district."
Work is due to begin on the project next June and should be completed by early 2013.
Edinburgh venues generated £42.6 million for the local economy during the first half of the financial year, figures from the Edinburgh Convention Bureau show