The Café Royal on London’s Regent Street, once a haunt of writers and artists such as Oscar Wilde and James McNeill Whistler, is to be turned into a luxury hotel to form the centrepiece of a wider £750m makeover of the area. Financial Times

Israeli hotel company Alrov Group will announce today that it has acquired the 125-year leasehold of the site for £90m from the Crown Estate, which controls the land and property owned by the sovereign.

The Café Royal, at the southern end of Regent Street, will be transformed into a 160-bedroom luxury hotel, with retail established at ground and basement levels.

The completed value of the scheme is expected to exceed £200m.