The Scotsman is very good.
The traditional luxury Hotels in Edinburgh are both on Princes Street.
The Balmoral is a bit Ritz Carltony - great restaurants and great spa.
The Hilton Caledonian (affectionately known as "The Cally" by locals) is also worth a look.
See ajamieson's excellent Edinburgh thread for more details.
http://www.flyertalk.com/travel/fttr...ML/000043.html