Luxury hotel for US Embassy site in London

Just recently the US Government has announced plans to sell their giant embassy building in Grosvenor Square to Qatari Diar–who are an investment and property development firm. The story coming out is that the site could become a five-star luxury hotel. It could turn the square into a popular area for high-end hotels, as there is already a Marriott Hotel and the Millennium Mayfair Hotel. The group has said they have not yet finalised details for the entire site, but it is thought it will be a mix of hotel accommodation and luxury residential apartments.

Qatari Diar have been interested in the building for more than two years now, and when they first inquired it valued at around £500 million. However, property prices in London on the commercial sector are thought to have dropped by up to 45 per cent, but no figures have been released for the purchase price of the building named the Chancery. The Middle East firm has started to purchase other property in Europe and recently unveiled the plans they had for the Chelsea Barracks. Prince Charles voiced his displeasure in the site and they have since been withdrawn.

The firm has said they will continue with investment in the UK as they see the potential for further opportunities. Already, they have spent an estimated £3 billion and continue to look for more. The US Government will stay at the Chancery until the move to their new offices in Wandsworth is complete by 2016.