The Malaysian owners of the Corus Hotel Hyde Park have put their freehold interest in the property up for sale for £200m.

Malayan United Industries have tasked Debutesq Group to sell the hotel, which it bought in 1997 for £44m.

The 200-year old listed Georgian building could be extended from its current 135,000 sq ft floorplate, the sales particulars said.

Alex Hayward of Debutesq Group, said: “Although the hotel has seen substantial investment over the past two or three years and is enjoying strong occupancy levels, a great deal could be done to improve revenue performance and investment return.”

Investor sentiment in London Hotels is at its highest since the beginning of the global crisis and the overall occupancy rates increasing each month due to the strong and growing demand for London hotels.

The developing interest from wealthy Chinese investors and sovereign wealth funds in the Middle East has led to a substantial increase in the value of hotels throughout London and other prime European cities.