Pension fund plans hotel in London office building

London's Basil Street could see the opening of a new hotel if plans to turn an office building into a 115-bedroom property gain approval.

The building is one of several owned by BP Pension Fund, which owns the area stretching from Sloane Street and the south side of Brompton Road to Hans Crescent.

The area includes the Basil Street hotel, the Capital Group's Capital hotel and the Knightsbridge Green hotel.

Planning permission has already been given to turn the offices, at 2 Basil Street, into an annexe. A subsequent application for a stand-alone hotel was originally turned down and was the subject of a planning appeal last month. A decision is expected by September.

BP's property portfolio manager, Brian Tisdall, said that the company would not be moving further into the hotel market, despite the lead set by Norwich Union, which has bought a string of properties in the last year.

"It is not that radical," he stressed. "Our view is that the best use [for 2 Basil Street] would be as hotel accommodation, either as an annexe or standalone."

If permission is refused, BP will consider using the premises as an annexe to either the adjacent Basil Street hotel or to another hotel in the area.