Pestana aims to build the £27 million 11-storey hotel at the corner of Piccadilly and Newton Street where a derelict building has been hidden by hoardings for more than a decade.

Southern Estates, a joint venture between Eastern Estates and Pestana Hotels, will develop the project which has been designed by Feilden Clegg Bradley Studios.

The redeveloped building will stand at 11 storeys tall and include ground floor retail and leisure uses and new public realm along Newton Street.  

The adjacent 67 Piccadilly, known as the Prince of Wales building because it was previously occupied by the Prince of Wales Life and Educational Assurance Company, will be demolished to make way for the scheme.  

Another building, 4-6 Newton Street, will be demolished. Both buildings have been vacant for some time.  

Clancy Consulting is both civil and structural engineer on the job with Crookes Walker Consulting on board as building services engineer.

Tendering for a main contractor is expected to take place in the Spring with an appointment due in the early autumn and then work starting in October.

Pestana Hotels operates other hotels under different brands in London but this would be its first outside the UK capital.  

There are currently two Pestana CR7 hotels, and both are in Portugal. One is in Madeira, where Ronaldo was born, and the other is in Lisbon.