• Admiralty Arch is one of London's best-known landmarks
  • It is to be converted by Spanish developer Rafael Serrano
  • Serrano is the man behind the glitzy Bulgari hotel in Knightsbridge

By Tamara Cohen and David Wilkes

PUBLISHED: 10:41 EST, 25 October 2012 | UPDATED: 20:19 EST, 25 October 2012

Forming a majestic gatehouse from Trafalgar Square to Buckingham Palace, it will certainly be able to offer rooms with a view.

After years housing civil servants' dilapidated offices, Admiralty Arch, one of London's best-known landmarks, is to become a luxury hotel, it was announced yesterday.

And with Rafael Serrano, the Spanish developer behind the glitzy Bulgari Hotel in Knightsbridge, heading the project, it should be eye-catching at the very least.

Majestic: Admiralty Arch, one of London's best-known landmarks, is to become a luxury hotel

Majestic: Admiralty Arch, one of London's best-known landmarks, is to become a luxury hotel

Some critics have panned the Bulgari – the most expensive place to stay in Britain, with even the cheapest rooms from 850 a night – for its 'brash' and 'tasteless' decor, dubbing it the 'Vulgari'.

Now Mr Serrano's London-based firm Prime Investors Capital has bought Grade I-listed Admiralty Arch for 60million, there is talk of 'subtle illuminations' on the outside, and a sumptuous ballroom and spa inside.

But at a press conference to unveil the sale yesterday, Mr Serrano was quick to stress that the 100-year-old building's period features will be painstakingly preserved as part of the deal.

When the arch's sale was announced last year, it was contingent on the building being made accessible to the public for the first time, with a museum mooted as an option.

National celebrations: The building has been part of many celebrations, including the Queen's Diamond Jubilee procession this year, over the last century

National celebrations: The building has been part of many celebrations, including the Queen's Diamond Jubilee procession this year, over the last century

Prime Investors Capital intends to convert the building into a five-star 100-bedroom hotel with royal and presidential suites, a ballroom, spa and fine dining restaurant

Five-star luxury: Prime Investors Capital intends to convert the building into a five-star 100-bedroom hotel with royal and presidential suites, a ballroom, spa and fine dining restaurant

Turning it into a five-star hotel will inevitably invite criticism that the arch will be accessible only to the super-rich.

Mr Serrano said the hotel should attract 50,000 guests a year in its 100 guestrooms, with a further 50,000 visiting its bars and restaurants, which will be open to the public.

The development will also create hundreds of jobs.

With nearby six-bedroom houses on the market for 30million, 60million might seem a snip.

But the deal is to restore the arch during a 99-year lease, a project which will probably cost hundreds of millions.

Spread over eight storeys, the 147,300 sq ft building is not being used at present, is falling into disrepair and has 900,000-a-year running costs, which Cabinet Office Minister Francis Maude said amounted to a 'tragic waste of an historic building'.

Affair: John Prescott and Tracey Temple at Deputy Prime Minister John Prescott's private flat at Admiralty Arch, February, 2006

Affair: John Prescott and Tracey Temple at his private flat at Admiralty Arch, February, 2006

Royal history: Beefeaters march through the arch on Coronation Day in May 1937

Royal history: Beefeaters march through the arch on Coronation Day in May 1937

Inside the arch: Used as the Cabinet Office headquarters, the public has rarely seen inside the building. Cabinet minister Francis Maude said the plans 'will bring this London landmark back to life'

In the 100 years since it opened, the building has had virtually no public access but Mr Maude says that the Government wants to 'preserve it for future generations'

'Great shame': In the 100 years since it opened, the building has had virtually no public access, including the south block staircase, but Mr Maude says that the Government wants to 'preserve it for future generations'

No decision has yet been made on what the hotel will be called or who will run it.

The team will liaise with the Government on the security implications, due to its sensitive position overlooking Whitehall and the Mall.

Buckingham Palace has been consulted, while the Government retains the freehold and still has the final say in its development.

The sale does not include Admiralty House, next door, which dates from 1788 and has provided grace-and-favour apartments for politicians including former deputy prime minister John Prescott.

The Bulgari Hotel Knightsbridge, also owned by Rafael Serrano. Room prices start at 850 and that's before service charges, tips and refreshments

Property investor Rafael Serrano is also behind the Bulgari Hotel in Knightsbridge. Room prices start at 850 and that's before service charges, tips and refreshments

Ostentatious: The Bulgari is the UK's most expensive hotel. Despite this, it is almost always completely booked

Glitzy: Another view of the interior of the Bulgari hotel in Knightsbridge

Glitzy: Another view of the interior of the Bulgari hotel in Knightsbridge



The comments below have not been moderated.

I shall book a night, then turn up in trashy jeans, smelly t-shirt and do the best i can to mske it hell for all there ;) I encourage all to do the same :)

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What would Nelson say? This is a disgrace by the Government. Next thing they will rent out Parliament house. - paudcent , Hobart, 26/10/2012 01:53 They already have we used to have M.P's in there.

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The Queen will be offering bed and breakfast next !!!!

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This about sums up Britain ... took only 70 years of a once proud nation to sell everything off that is British, and to add issult to injury now they left an important icon to rot away vitually unoticed for years on end .. and their solution .. lease it out to some commercial enterprise. Well done, UK! And whilst you at it maybe selling off the houses of Parliament or indeed Buckingham Palace since you seem to be on a roll at the moment.

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Can I book the Prescott Suite for a bit of hanky-panky please?

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So, it's currently used for run down offices and people are complaining it is being turned into a luxury hotel? Wow! It'll bring more tourists to the area, will liven up interest in the place, and is surely a better alternative than run down offices that no one is allowed to see anyway? If it is built, I will definitely be staying a night or two! Great idea!

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So the line that the government needed more office space was a lie. A blatant lie. We paid for Portcullis House and the others quite unnecessarily. That building is Grade 1, meaning that it shouldn't be modified inside or out, but the rules obviously apply to those that make them. And in the days of paranoid security, where we have cameras on every turn, and not one but two barriers protecting Downing Street, the Palace and Royal Processions are open to the elements. Where to begin?

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Why do you have to point out that the man is Spanish with despective remarks? I am Spanish and I think it is disgusting that your government is selling this to make it a hotel. The ones who are making a mistake are the ones who are selling it, not the Spanish developer who is just trying to make a lot of money as you wished. I do not understand what you have against Spanish people but it is quite ridiculous that you are criticizing us all the time even though we have nothing to do in the story

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Disgusting! It should have been rehabilitated and used instead of future new constructin. Where, after all, will the displaced civil servants be housed?

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I see the selling off of the nation's assets or heritage is alive and well under the tories.Tory voters, is this what you voted for when you put this shower into government? If it was then I seriously question your judgement. This scheme is totally crass, in fact it borders on constructive vandalism of the nation's heritage.

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