Fledgling hotel group AB Hotels is to invest £12m turning six Georgian town houses near London's Marble Arch into a four-star boutique property.
The Arch Hotel in Bryanston Street, which comprises six town houses and two mews houses, will be redeveloped into an 84-bedroom/suite property, with restaurant, bar, lounge, library, three meeting rooms and a gym.
Interior designer RDD has been appointed to create the new contemporary-feel hotel, which is due to open at the start of 2008.
Charles Morgan, AB hotels group operations director, said: "It's a Georgian Grade-II listed façade, but inside it will be classic chic but with a sharp eye for detail."
Managing director Abraham Bejerano added: "The hotel will have large interior designed bedrooms, meeting rooms and a gym. We are creating a hotel which guests will remember for its quality of service, exemplary facilities and superb ambience."
AB Hotels operates two other four-star properties, the Five Lakes Hotel, golf, country club and spa near Tiptree in Essex and Sopwell House in St Albans, Hertfordshire, which is due to relaunch its restaurant next month.