THE TERMS luxury' and budget' don't enjoy a natural affiliation like, say Martini and rocks, or Forth and bridge. But a new hotel at that very location disproves the notion that the fine things in life always come at a hefty price.

It would be overstating things to suggest that Dakota Forth Bridge is cheap as chips, but an overnight stay won't leave you - as many a hotel in nearby Edinburgh does - feeling that a week in Thailand would have been cheaper.

It's what you get for your money at Dakota that counts. Like its forerunners off the M1 at Nottingham and beside the M8 at Eurocentral, Dakota Forth Bridge is an unexpected but welcome addition to the UK hotel scene. When did you last drive off a British motorway to find a natty reception - all lush timbers and warming tones - and a boudoir which the snazziest city hotel would be proud of? Within yards of our main arterial routes you'll usually find nothing but a burger that'll clog a different kind of artery, and an interior composed largely of plastic.

Locations chosen by hotel aficionado Ken McCulloch for his new Dakota fleet have been questioned. But the man who brought Scotland its first boutique hotel (One Devonshire Gardens, Glasgow) and developed the slick Malmaison chain knows what he's doing. Having collaborated with Formula One driver David Coulthard to open, in 2001, the Columbus Hotel in Monaco, the same team brings us Dakota, named after the aeroplane that opened air travel to the masses. In a similar vein, the new venture brings a distinct brand of luxury to a wider audience.

On the face of it, Dakota sites may be glamorous as an out-of-town PC World, but they can't go wrong with passing trade, while proximity to city suburbs invites custom to their respective destination' restaurants.

Gritty' locations also make the hotels' appearance more acceptable. Love or hate these striking granite and smoked glass (yes, you can see out) structures, it's hard to describe them as beautiful. All the gorgeousness is concealed inside, but the ultimate impression is more rewarding for that deceptive wrapping.

"We contrasted bold exteriors with soft interiors," says McCulloch's interior designer wife Amanda Rosa. "Rather than use design for design's sake, I created relaxing spaces that encourage people to loosen their shoulders."

A welcoming ambience was vital, especially to business travellers who don't necessarily want to be away from home, and Dakota's blend of chocolate and cream tones creates a mellow mood.

Instead of using bold colours (familiar to Malmaison) for definition, this understated space makes texture its focus. Exposed brickwork lends the reception and adjoining bar and grill a New York loft look, the industrial quality enhanced by bare pipework at ceiling height. Voluminous sofas and rich timber tables soften the look while a contemporary fireplace within a horizontal aperture in a dividing wall affords guests on either side a cosy seat.

The grill's separate entrance makes the restaurant accessible to non-residents.

"The restaurant has lots of windows and the pale leather seating keeps things bright," says Rosa.

With Edinburgh-born chef Roy Brett in the kitchen, there's every reason to assume the food will be enticing too. Brett ran the kitchens of the Malmaison Group and is big on local suppliers, with seafood prominent on his menus.

The restaurant also has a subtly screened central area that affords business diners privacy. Even the five meeting rooms are warm and plush, but the real homes from home' are the bedrooms.

McCulloch's characteristic attention to detail is in evidence within the lifts which transport you to your floor, which are enlivened by wall-mounted frames that contain moving images of clouds to complement the airborne theme.

There are model planes too in bedrooms where quirky accessories deliver personality. Oversized lamps and clocks are a recurring theme, while wall hangings look as though they were personally selected on an exotic holiday.

"They were made in a South African village and no two are the same," says Rosa, who favoured an eclectic look that mixes fabrics and products from around the world.

Even thickly carpeted standard rooms, all with plasma screens, are spacious, with sleek contemporary shower rooms that boast decadent toiletries from the south of France. There's storage for extra (Egyptian) linen in drawers beneath beds, these positioned forward of the walls to accommodate wardrobe and shelves behind.

Suites are on a generous scale with vast sofas upholstered in subtle stripes, and spectacular views of the famous bridge.

But amongst Dakota's warmest aspects are personalities who furnish it, with staff clearly sharing the designer's desire to please.

"Dakota is about a sincere welcome," says Rosa. "Design is just a part of that."

Visit www.dakotahotels.co.uk; 0870 423 4293