The multi-million pound property is the first of its kind for the hospitality group, which manages 5,000 serviced apartments across Europe, Asia, the Middle East and Australia.
Fraser Suites Edinburgh, which has been converted from a 19th century newspaper office once run by author Daniel Defoe, offers 75 individually-styled rooms with kitchen facilities, plus a restaurant and gym.
Guus Bakker, Frasers Hospitality chief operating officer for Europe and the Middle East, said: "Edinburgh is a major centre for business and tourism and is an integral part of our growth strategy in Europe. Because of the nature and location of our building in Edinburgh, we realised it would be better suited to hotel accommodation rather than comprising exclusively of apartments."
City of Edinburgh Council economic development convener Tom Buchanan added: "Business tourism is a vital element of the city's economy and Frasers Hospitality's decision to locate here shows that Edinburgh is seen as a well-respected destination for businesses across the globe."
Frasers Hospitality, part of Singapore-based conglomerate Fraser & Neave, is currently expanding and plans to double its number of residences by 2012.