A message on the website of the Ace Hotel London Shoreditch has said the property "will no longer continue" under its current guise.
The statement said: "We're heartbroken to announce that our longtime home on High Street will no longer continue as Ace Hotel London Shoreditch. As our first hotel outside the US, it was built as an open satellite for the extraordinary energy ignited by the city itself. We fell in love with that energy, and we're excited to build a new home in London in the hopeful, renewed future…
"London, you're a dream. We're celebrating every incandescent second and we can't wait to open our doors in your city again. We'll see you soon."
The property is managed by the Lore Group, which has confirmed it will also take over operational management. Chief operating officer David Taylor said: "Given the unprecedented impact of COVID-19, the Ace Hotel and its outlets will remain closed so that we can invest in a significant renovation that will both refresh and enhance the guest experience.
"We are also taking over operational management of the hotel, consistent with the other premium hotels in our collection. We are grateful to Ace for helping us make the hotel what it is today and look forward to welcoming guests back once the work is complete."
The 258-bedroom Ace launched in September 2013, after being converted from a former Crowne Plaza hotel, and was the first overseas outpost of the US-based, style-led brand.
Spearheaded by then managing director Chris Penn, the Ace brand has made a name for itself for having an un-hotel like approach to locally-inspired design with signature pieces of vintage furniture, unpainted metal doors and original artwork, alongside in-bedroom record players and staff-curated vinyl. It was honoured for achieving the Best Renovation at the 2014 European Hotel Design Awards.
Ace Hotels was launched by Alex Calderwood in 1999, who sadly was found dead in the London hotel two months after it opened, having suffered an alcohol and drugs overdose.