Historic London Bank to Transform into 304-Room Capsule Hotel
The City of London Corporation has approved plans to redevelop a vacant Grade II-listed former bank into a new 304-room hotel, marking a significant transformation for a key historic site in the heart of the capital. Developer Criterion Capital will convert One Princes Street, located at Bank Junction on the corner with Mansion House Street, into the latest Zedwell hotel, its in-house brand known for capsule-style, windowless rooms designed to prioritize sleep and well-being.
Preserving Heritage with Modern Use
Originally built in 1931 and designed by Sir Edwin Cooper, the building served as the National Westminster Bank and was first listed in 1977. It stands as a prominent feature of Bank Junction, within walking distance of iconic landmarks such as St Paul's Cathedral and the Bank of England. Planning documents confirm that no major external changes or additional floorspace will be created, ensuring the preservation of its architectural integrity while adapting it for contemporary use.
Of the 304 rooms planned, 30 will be accessible, catering to diverse guest needs. The hotel will emphasize sustainability and design, featuring air purifying filters, spacious lobbies, and the use of natural and recycled materials. Zedwell's unique approach minimizes outside disruption by omitting traditional amenities like TVs in some rooms, focusing instead on creating a restful environment.
Community and Philanthropic Elements
In addition to the hotel, the redevelopment will include spaces for community and philanthropic purposes. The Aziz Foundation, a charitable initiative supporting British Muslims founded by Criterion Capital's founder and former Chief Executive Asif Aziz, will occupy areas in the Banking Hall on the ground floor and Heritage Rooms on the first floor. This integration aims to blend commercial activity with social impact, adding a layer of civic engagement to the project.
A flexible retail, café, and gym space will also be incorporated, taking up part of the ground floor, mezzanine, and basement. This multifunctional aspect is designed to enhance the building's utility and appeal to both hotel guests and local residents.
Developer Background and Expansion
Criterion Capital, which manages an extensive real estate portfolio, has been actively expanding the Zedwell brand across the UK, with notable locations including Piccadilly Circus and Tottenham Court Road. However, the developer has faced scrutiny in recent years for its handling of cultural institutions in London, such as the world's first YMCA on Great Russell Street, which was purchased in 2024 and closed in February 2025 despite efforts by heritage groups to preserve it. A decision on listing that building is still pending from the Government.
The redevelopment of One Princes Street represents a strategic move to repurpose a historic asset into a modern hospitality venue, aligning with trends in sustainable urban development. By combining hotel accommodation with community spaces, the project seeks to contribute positively to the City of London's evolving landscape while honoring its architectural heritage.
