Contractor Chorus Group has signed the contract to build a £40m boutique hotel in central London.
The plan to convert a listed 1920s garage into an 85 bedroom hotel has been masterminded by Grosvenor Estates and the team behind the famous London Ivy restaurant.
The Corbin & King luxury hotel will also boast an “inhabitable sculpture” by artist Antony Gormley.
Westminster Council has already approved the plan to raise the height of the building with two new storeys to create a six-floor property.
Once construction starts, the development will take 18-20 months with the aim being to open early in 2013.