Snow Hill Police Station in London's Square Mile is to be transformed into a hub by Premier Inn hotel, when officers vacate the building later this year.
City of London Corporation has sold the police station to Whitbread on a 151-year lease, however officers could continue to work from the building until December, when it is due to be decommissioned.
Jonathan Langdon, acquisitions manager for central London at Whitbread, said: "Farringdon is one of the most vibrant locations in London, so we're delighted to have secured a new site on Snow Hill with the intention of delivering a new hub by Premier Inn hotel, subject to obtaining planning permission.
"The site's close proximity to the City, the Culture Mile initiative and some of London's most historic attractions, such as St Paul's Cathedral and Guildhall, makes it a prime location for both business and leisure customers, and with the arrival of Crossrail, the demand for hotel rooms in Farringdon is only set to increase.
"We recently opened a new Premier Inn hotel at Smithfield and are currently building another hub by Premier Inn on Farringdon Road, so the Snow Hill acquisition is a great opportunity for us to grow our hub by Premier Inn portfolio in such an important London catchment."
Sir Michael Snyder, chairman of the City of London Corporation's Capital Buildings Committee, added: "The sale of this property brings the possibility of much needed overnight accommodation in the City, while not affecting the police's ability to deliver a first-class service across the Square Mile.
"As we work towards realising our vision of the City as a 24/7 destination, it is estimated that more than 4,000 hotel rooms will be required to meet demand from workers, tourists and residents. Developments like that announced today will be crucial in meeting this target."
The five-storey building, which is Grade II-listed, was designed by architect Sydney Perks and dates back to 1926. The real estate services company Cushman & Wakefield acted on behalf of the City of London Corporation in the sale of the property.