The green light has been given for the creation of a luxury Peninsula hotel in central London.

Westminster City Council’s planning committee granted planning consent for the development.

Joint venture developers Grosvenor Britain and Ireland and Hongkong and Shanghai Hotels plan a 190-room hotel, to be known as The Peninsula London, at Hyde Park Corner.

The partners submitted an application in July to replace existing 1950s and 1960s offices with a hotel and residential apartments designed by UK-based Hopkins Architects.

Building work is now due to start in summer 2017, with completion due in 2021.

The scheme is expected to support more than 2,000 jobs and deliver up to £60 million a year to the economy of the capital.

Grosvenor Britain & Ireland chief executive, Peter Vernon, said: “This is an excellent opportunity to shape a very special part of London.

“The Peninsula London is an example of the long-term thinking and high-quality design required to maintain London’s status as a global city.

“The scheme will support thousands of jobs and brings tens of millions of pounds to the West End economy.

“The Peninsula London also provides a chance to improve the surrounding realm by widening pavements, planting more trees and providing easier road crossings.

“It is a major milestone in our efforts to improve Belgravia as a place to visit, live and work.”

Clement Kwok, managing director and chief executive of Hongkong and Shanghai Hotels, added: “London is one of the world’s most dynamic capital cities and we are excited to move another step closer to introducing The Peninsula brand to London together with our partner, Grosvenor.

“This hotel has been designed to align with our group’s philosophy of developing a small number of the world’s best hotels in exceptional locations, while respecting the history and heritage of the local area.

“We are very optimistic for the long-term future of London as a business and tourism destination. ”