Shiraz Boghani and Bashir Nathoo, co-founders of the Splendid Hotel Group which was developing the hotel, are now dissolving their partnership and have been forced by court order to bring the site to market.
Located between Southwark Underground station and the Tate Modern, the site has planning permission for a 280 bedroom hotel including 20 suites, a large ballroom capable of accommodating up to 700 people, health and leisure facilities, a restaurant, a bar, a business centre and meeting rooms.
Paul Bartrop, director of CBRE Hotels which is marketing the hotel, confirmed that ground works on the freehold site are now nearing completion, but the site would need an investment of around £47 million to bring the property to fruition.
He said: “This part of London is seeing rapid growth and gentrification. The Southwark Hilton site represents a first class opportunity to acquire a high profile hotel development project complete with full planning permission where so much of the hard work has already been done.”
CBRE said the sale of the development would be subject to a management agreement with Hilton UK, who are still signed up as operators for the proposed hotel.