Architects have been appointed to transform the Café Royal on London's Regent Street into a five-star hotel as part of a £750m facelift of the area.

Israeli investment firm Alrov Group, leaseholder of the site, has secured David Chipperfield Architects to restore and convert the building into a 25,000sq m, 160-room hotel. When complete the property will form part of a wider 93,000sq m (1 million sq ft) mixed-use development, called The Quadrant, which also includes the redevelopment of the Regent Palace Hotel and Quadrant Arcade blocks. David Chipperfield has already submitted a revised Listed Building Application to retain more of the property's existing Louis XVI fabric than was previously granted planning permission for.

The project will include the renovation of the listed interiors including the marble entrance hall, the Grill Room and Domino Room. An interpretation of the original Ten Room as a new double height foyer will be reinstated and five other historic rooms will be converted to large VIP suites. David Shaw, head of Regent Street Strategy and Development at the Crown Estate, said: “The Quadrant development’s potential for regenerating the southern end of Regent Street has been reinforced today by Alrov’s commitment to develop the Café Royal in line with our proposals. We are delighted to be working with Alrov on this historic building.”

Construction on the Café Royal is expected to begin in Summer 2009 and conclude before 2012.