Slated to open in 2021, The Peninsula London will be the first UK site for the brand - which operates ten five-star hotels around the world.
Proposals have been submitted to Westminster City Council as part of a joint venture between Grosvenor and The Hongkong and Shanghai Hotels.
Construction is set to begin in 2017, replacing the existing 1960’s office building on the 1-5 Grosvenor Place site.
Designed by British-based Hopkins Architects, the hotel will feature a spa, shops, bars, restaurants and a ballroom.
A grand pedestrian entrance on Grosvenor Place will be accessible via a colonnade and lead to an internal ‘Palazzo-style’ courtyard.
The proposals include space for 24-28 residential apartments in the building, complete with separate leisure and spa facilities and a reception and entrance on nearby Halkin Street.
Peter Vernon, chief executive officer of Grosvenor Britain & Ireland said: “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.”
As part of the plans improvements will also be made to the surrounding area, creating wider footpaths and planting new trees along Halkin Street and Grosvenor Crescent.