Construction work has begun on the third Dakota hotel, in South Queensferry, near Edinburgh in Scotland.

The 132-room property will be owned and operated by Dakota Hotels, a company headed by the creator of Malmaison hotels, Ken McCulloch, and Formula 1 driver David Coulthard.

Facilities at the £12m property will include a Bar and Grill restaurant and it will be the second to open in Scotland.

A 92-room Dakota is also scheduled to open in August at the 650-acre mixed-use Eurocentral scheme near Glasgow.

The group opened the first of its boutique-style budget hotels at Sherwood Business Park in Nottingham in 2004 and plans to have 40 sites by 2011.

Primarily aimed at attracting business professionals, Dakota sites will be positioned near motorways and in business parks, city centres and airports. Details: www.dakota.com