Peninsula Hotels is moving into London after announcing plans for a new luxury development near Hyde Park Corner.
The Hong Kong-based company has spent £132.5 million for a 50 per cent stake alongside freeholder Grosvenor to redevelop the west London site, currently a 1960s office block.
The property at 1-5 Grosvenor Place in Belgravia will become a Peninsula Hotel and offices.
Peninsula's parent company Hong Kong and Shanghai Hotels bought the stake off Derwent.
That company's chief executive John Burns said: "We took a view that the hotel development was more effective, and we're not in the hotel business."
Peninsula had been searching for a suitable venue in London for some time (see online news, May 2012).
It has also emerged that the hotel group's under construction Paris property will include a rooftop terrace, including a restaurant and bar, with capacity for 50 people.