A former lighthouse tender is to become the subject of a £1m conversion to turn it into a 25-bedroom luxury hotel based in Edinburgh, Scotland.

Royal Yacht Britannia Trust – owner of nautical visitor attraction the Royal Yacht Britannia – has announced the purchase of the 239ft (73m) Windsor Castle vessel from Hong Kong-based Tamahine Shipping, amid plans to turn it into a lavish hotel offering.

The acquisition follows the introduction of two Titanic-associated hotels in Liverpool, suggesting the makings of a nautical trend growing among UK hotel investors.

The Windsor was the last ship to be built by Glasgow’s famous Blythswood Shipbuilding Company and previously served as the Northern Lighthouse Board’s tender, formerly known as Fingal.

Once complete, the hotel is to be permanently berthed in Edinburgh’s historic port of Leith, opposite the owners’ Britannia attraction.

The ship is due to arrive in the port during the last week of August, where it will undergo an 18-month conversion, with the new hotel scheduled to open in the first quarter of 2016.