South Molton, Grosvenor's £500 million mixed-used development in the heart of Mayfair, will play host to the UK's first Oberoi Hotel after the Duke of Westminster's property group agreed a deal with its parent company EIH London Investments.
The Indian luxury hospitality group is poised to open its boutique hotel on the corner of 40-46 Brook Street, which is a short distance away from Bond Street tube station and the Oxford Street shopping thoroughfare. It also close to luxury hotel Claridge's.
Grosvenor secured planning permission for the restoration of the 33,000 square-foot listed building in 2022, as part of its wider South Molton development. The project is the West End’s largest mixed-use development, according to the landlord, and will also include new office accommodation, housing, cafes, shops, restaurants, community and leisure spaces.
At the heart of the project is a 267,000 square-foot joint venture between Grosvenor and Mitsui Fudosan UK, which is set to deliver two offices on Brook Street and Davies Street, targeting occupiers looking for a corporate headquarters.
Grosvenor said the wider South Molton development will serve as a new gateway into Mayfair, drawing an estimated £6.5 million of spend annually and creating 1,000 permanent jobs, alongside 450 jobs and apprenticeships during the construction phase. Work began on site last November, with all phases scheduled for completion by the end of 2027.
Rachel Dickie, executive director of investment and development at Grosvenor, said in a statement: "Confirming a brand as prestigious as Oberoi Hotels & Resorts will have its first UK presence at South Molton, in the heart of Mayfair, is what we mean when we say we are creating a destination of international significance. We are thrilled to have such a fantastic anchor for the project at this early stage of development."
Mr. Arjun Oberoi, executive chairman of The Oberoi Group, added: "This partnership with Grosvenor marks an important milestone in our international growth. London has always been a key market for us, and we are excited to bring our distinctive and personalised hospitality to the heart of Mayfair. The Oberoi, Mayfair, will not only be a celebration of our brand but also a symbol of the innovation and excellence we bring to every project."
JLL acted for Grosvenor and EIH London Investments was advised by Johnny Sandelson.