15 Old Bailey is to become a hotel once again as part of joint venture plans between Boscalt Hospitality and an unnamed London-based developer.
The site is expected to be repositioned into an upper-upscale hotel featuring 110 bedrooms, a full-service restaurant and bar, and a gym, with an estimated 18 months of works remaining.
The Old Bailey hotel will be the first hotel for Boscalt Hospitality, a subsidiary of the Edmond de Rothschild Group's private equity arm.
The building was completed in 1874 by Evans Cronk and was the first hotel in London to have electric lighting. It most recently served as an office building with meeting rooms and an executive business lounge.
This acquisition is in line with Boscalt strategy of "purchasing properties with high potential, upgrading them to build a strong portfolio of upscale to luxury hotels located in major European cities". The team is next focused on new acquisitions in continental Europe.
Boscalt co-founders Liza Masías and Jaume Tàpies said: "The team is currently in advanced discussions with an internationally renowned hotel operator that is envisioned to manage the hotel. This is a great time to invest in London, a city where booking rates are promising. The hotel construction pipeline is growing rapidly, which is an optimistic projection for the hospitality industry."
Johnny El Hachem, chief executive of Edmond de Rothschild Private Equity, added: "We are delighted with this first investment in a building with a rich history and personality, located in the heart of London. It is proof of the relevance of the team's strategy and expertise, particularly in these difficult times."