The historic US embassy in Grosvenor Square will be transformed as part of a £1billion hotel and retail development.

Permission has been granted for developers Qatari Diar to alter the site, which has been home to US ambassadors to the UK since 1960, into a 137 bedroom hotel, spa and ballroom for 900 guests.

Many of the building’s most famous and iconic features, including the large gilded aluminium eagle on the roof, will remain as part of the agreement struck between Westminster City Council and developers.

Approval is also dependent on the developers funding the removal of existing security fences, huts and bollards and the reopening of the surrounding roads as soon as possible.

Access to the area has been restricted in recent years as part of heightened security measures.

The US embassy in Grosvenor Square, Westminster

A new embassy is being built in Nine Elms in Battersea, Wandsworth, as part of the area’s regeneration project and is expected to be complete in 2017.

The US Embassy has been located at the Grosvenor Square building since 1960 and was Grade-II listed in 2009.

How the entry to the new hotel could look

It is the focal point of events related to the United States in the UK, and has often been the scene of various protests.

Cllr Robert Davis MBE DL , Westminster City Council deputy leader and cabinet member for the built environment, said: “Today marks the start of a new era in Grosvenor Square’s rich history.

"Everyone recognises the American embassy building and this will be an iconic hotel.

“I am pleased to rubberstamp these plans which open up the area to billions of pounds of investment and greatly improve access to the square and surrounding roads.

“As a hotel and retail space this site will attract new visitors and create a vibrant atmosphere to invigorate the local economy.”

The famous gilded eagle which looks down from the roof of the US Embassy in Grosvenor Square will remain as part of its £1bn hotel and retail development

Other conditions listed by the council include the relocation of the statues of President Reagan and President Eisenhower subject to securing separate planning permission.

Grosvenor Square is a large garden square and is the centrepiece of the Mayfair property of the Duke of Westminster, and is within walking distance to Oxford Street and Bond Street.

It is also close to Grey’s Antique Market, Berkeley Square, the Ritz and London Marriott Hotel.

Keep up to date with the latest news in west London via the free getwestlondon app.

You can even set it to receive push notifications for all the breaking news in your area.

Available to download from the App Store or Google Play for Android now!