The hotel, restaurant and coffee shop operator completed a £35.3m deal this week with LaSalle Investment Management on behalf of one of its pension fund clients, enabling it to move forward with the conversion.
Building work on the property in Dorset Rise, Blackfriars, will start in November with the hotel expected to open next summer.
Whitbread has already made it clear it is planning major growth across the capital for its budget hotel brand. Last month it announced its intention to double its size in the capital by 2016. It currently operates 51 hotels offering 6,127 rooms within the M25.
Derek Griffin, head of acquisitions – Greater London, Whitbread Hotels and Restaurants, said: “Adding Dorset Rise to our portfolio of London hotels is another great result for Premier Inn. It’s a perfect location for us in the heart of the capital with Blackfriars train station, St Paul’s Cathedral, Tate Modern and the theatres and restaurants of Covent Garden just a short walk away.
“Our customers want great locations and great value from Premier Inn. We are using our expertise and the strength of the Whitbread financial covenant to unlock an exciting new future for this former office building. It’s another great example of Whitbread doing an innovative deal to expand our fast-growing portfolio.”