PPHE Hotel Group has secured planning consent to develop a new hotel within the Park Plaza Victoria London property.
Westminster City Council has approved plans to convert 6,500 sq m of existing subterranean space into a 179-room hotel with a separate and dedicated entrance.
The group said the new midscale lifestyle site taps into a growing segment of the market, but has not yet confirmed the brand of the property.
The current 299-key Park Plaza Victoria London will continue to operate as a standalone "upper upscale" hotel.
Boris Ivesha, president and chief executive at PPHE Hotel Group, said: "This is an exciting new project utilising an existing asset and operations in a sought-after location to maximum effect. Situated in the heart of the city, this 179-room property will further enhance our London portfolio, broaden our accommodation proposition, enabling us to tap into a new guest demographic, whilst maximising returns."
PPHE Hotel Group is an international hospitality real estate group that develops, owns and operates hotels. It opened Art'otel London Battersea this year and is set to launch Art'otel London Hoxton in 2024.