Speaking at the groundbreaking of Peninsula London, which will open in 2021 in Belgravia, chairman of HSH Sir Michael Kadoorie said he hoped the hotel would be recognised as “one of the finest in the world”.

“This is a very important day for the company, one which my family has been involved with for a hundred years; it feels like we have been looking for a site for a hotel in London for as long,” Kadoorie said.

Attending the groundbreaking with Kadoorie was Hugh Grosvenor, the Duke of Westminster, whose family’s property portfolio includes around 100 acres of Mayfair and 200 acres of Belgravia and is the freeholder and landlord of the site.

Kadoorie added: “We are already four years into this partnership [with Grosvenor] and are delighted to have found such a magnificent home for our hotel and residences. Peninsula London will be a new gateway to Belgravia, one of the most sought after parts of London.”

The project site for Peninsula London overlooks Hyde Park Corner and the Wellington Arch and will include a 190-room hotel and up to 28 apartments.

A 1960s office block has been demolished to make way for the hotel, and as part of the project, the owners will also provide affordable housing nearby at Buckingham Palace Road in Westminster.

Overall, the project is expected to support 2,000 jobs and deliver additional expenditure of £60 million to the London economy annually.

Peninsula London has been designed by UK-based Hopkins Architects Partnership, with interiors by Peter Marino Architect, while food and beverage outlets are being designed by Archer Humphryes and CAP Atelier.