The Hongkong & Shanghai Hotels announced on Wednesday that it plans to purchase a 50% stake from Derwent London in a central London hotel development site for £132.5 million (US$206 million).
The property site, located at 1-5 Grosvenor Place SW1, is comprised mainly of offices and extends to 168,000 sq ft (15,600 sq m) at Hyde Park Corner, Belgravia.
The companies signed non-legally binding heads of agreements on the purchase.
It is intended that, following the disposal of Derwent London’s interest, Peninsula Hotels and Grosvenor will work together on redeveloping the site as a hotel and residential complex.
The Hongkong and Shanghai Hotels, Hong Kong, did not immediately respond to a request for more details on the proposed hotel development from HOTELS. The company, which operates nine hotels in Asia Pacific and North America, plans to have a subsidiary operate the hotel as The Peninsula London. The hotel would be the company’s first in the U.K.