Bahrain royals 'to pay £720m for Grosvenor House Hotel'

The Grosvenor House Hotel in Park Lane is set to be the next trophy property for oil-rich buyers from the Gulf states.

The landmark five-star hotel, which contains London's biggest banqueting hall, The Great Room, was built in the Twenties .

The 500-bedroom hotel has just gone under a £100 million facelift but, according to the Estates Gazette, its owners, the Royal Bank of Scotland, are negotiating a £720million sale to the ruling family of Bahrain. RBS bought the hotel in 2003 when previous owners, Le Meridien, went into receivership. It is now managed by Marriott.

Last July the hotel was rumoured to be available for £655 million.

The Bahrainis already own the nearby 219-bedroom Four Seasons Hotel.

An RBS spokesman said: "I am sure we would consider selling Grosvenor House if a fantastic offer came along."