The 400-bedroom Corus Hotel Hyde Park has been put up for sale, with an asking price of £200m.
Malaysian investment company Malayan United Industries Berhad (MUIB) is selling the freehold interest of the Georgian property, which it bought in 1997 for £44m.
The hotel is being marketed by the Debutesq Group, which has indicated that the property could be reconfigured and extended beyond its current 135,000sqft footprint.
Alex Hayward of the Debutesq Group said: "Although the hotel has seen substantial investment over the past two or three years and is enjoying strong occupancy levels, a great deal could be done to improve revenue performance and investment return".
MUIB is the owner of nine Corus hotels in the UK.