The five-star, 189-bedroom Swissôtel the Howard, London, is to close because of plans by the property's owners to redevelop the site close to Covent Garden.
Managed by Swissôtel Hotels & Resorts since 2001 and owned by real estate investment trust Land Securities, the hotel will continue to operate as normal until its closure on 30 September 2011.
As many of the staff as possible will be transferred to other Swissôtels worldwide or to hotels under sister brands Fairmont or Raffles. Fairmont manages two hotels in the UK - The Savoy in London and the Fairmont St Andrews - while Raffles' nine hotels are all overseas.
Management company FRHI Holdings operates 101 hotels and resorts worldwide under the Swissôtel, Fairmont and Raffles brands.
The Swissôtel the Howard is part of the Arundel Great Court development, which is to be transformed into new commercial and residential buildings, including a new hotel. It is not due to be completed until 2015.
"We have had a very close relationship with Land Securities and the company was always very satisfied with our achieved business results here at Swissôtel the Howard, London," said Andreas Stys, general manager of the Swissütel the Howard.
"The decision to cancel the contract is solely based on the financial decision of the transformation of the Arundel Great Court development."
Swissôtel Hotels & Resorts is currently looking for an alternative site to open a luxury hotel in London.
By Janet Harmer
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