Grosvenor exited the JV it set up with Hongkong and Shanghai Hotels to develop the £500M Peninsula Hotel and homes at 1-5 Grosvenor Place in Belgravia.

HSH will pay Grosvenor £107.5M in cash to acquire Grosvenor’s 50% stake in the project. HSH will assume control of delivering the redevelopment of the hotel and residences.

Grosvenor will retain the freehold of the property as part of its 300- acre London estate and will collect rent from the hotel.

The scheme received planning consent from Westminster City Council in April this year. It includes plans to replace the existing 1950s and 1960s offices with a 189-room hotel and 24 to 28 apartments.

HSH will break ground in summer 2017. Research by economic consultancy Volterra suggests the scheme will support over 2,000 jobs and deliver up to £60M to the London economy annually.