Located at Grosvenor Place in Belgravia, the 190-room property is the result of a joint venture between Grosvenor Britain & Ireland and The Hongkong and Shanghai Hotels, operators of The Peninsula Hotels.
Designed by British-based Hopkins Architects, the new building will replace the existing offices situated at the site.
Peter Vernon, Chief Executive Officer of Grosvenor Britain & Ireland said, "This is an exciting opportunity to shape a very special corner of London. For over 300 years Grosvenor has carefully curated its London estate in Mayfair and Belgravia and ThePeninsula London is another important step in our journey.
“This high-quality development is sensitive to its surroundings, sustainable and will support around 2,800 jobs in the wider economy. It will enhance the West End's reputation as one of the world's foremost places to visit and a driving force for the UK economy."
Notable amenities will include shops, bars, restaurants and a ballroom, while a grand pedestrian entrance on Grosvenor Place will be accessed from a colonnade linking to an internal 'Palazzo-style' Courtyard.
The building will also feature a number of residential apartments with a separate entrance, leisure and spa facilities, and reception areas.
Peninsula Hotels operates hotels across Asia, Europe and the United States. Its flagship hotel in Hong Kong opened in 1928.