The City of London Corporation has given the green light to plans for a luxury hotel situated on the northern bank of the River Thames.

According to the Local Democracy Reporting Service, the historic Custom House, which holds a Grade I listing, will be transformed into a hotel featuring 179 rooms, with the riverside path set to be redeveloped as a communal area.

A prior proposal was turned down in 2022 due to worries that it would negatively impact the building’s heritage.

The revised submission made in April lowered the number of guest rooms and eliminated a proposed two-story roof extension, receiving approval on September 9.

Custom House, a structure that historically served as a customs facility for the regulation of trade, has stood on or adjacent to this site since the 14th century, with the current edifice opening its doors in 1817.

It housed His Majesty’s Revenue and Customs (HMRC) until 2021 and was acquired by Jastar Capital in 2023, which has initiated plans for its conversion into a luxury hotel.

Jay Matharu, the property director at Jastar Capital, expressed enthusiasm, stating, “Custom House possesses a rich heritage in the City, and we are thrilled to witness it revitalized as an integral part of the riverside community.”

The earlier 2022 proposals faced objections from heritage organizations, such as the Georgian Group and SAVE Britain’s Heritage, leading to the planning inspectorate’s rejection on appeal.

In contrast, the latest application saw no opposition from heritage groups and even garnered support from both the Georgian Group and Historic England, who contributed to the planning discussions beforehand.

Historic England remarked, “Custom House has long been an underutilized architectural treasure, with its potential as a new London destination remaining overlooked. The approval of these proposals will facilitate an exciting transformation of one of London’s most remarkable Georgian buildings, granting it a renewed purpose while honoring its status as a Grade I-listed property.”

Historic England specifically endorsed the idea of converting the car park into a new public quayside, enhancing accessibility along the Thames Path.

Additionally, a “Golden Thread” will be established, facilitating public entry into significant historic areas, including a new ground-level route through the former King’s Warehouse.

The hotel is expected to include amenities such as a basement spa, cultural café, gallery, and event spaces.

The sub-committee unanimously approved the proposals.

Tom Sleigh, chairman of the City of London Corporation’s planning sub-committee, remarked, “Transforming the car park into public space equivalent to 12 tennis courts along the riverside represents the kind of dynamic change that breathes life into the city. This project exemplifies how the City can honor its heritage while also creating vibrant spaces for public enjoyment.”

There were two objections raised regarding the plans, one from the River Residents Group (RRG), who expressed concerns about protecting the public realm adjacent to the river, particularly with the proposal to convert part of the public area at Sugar Quay into a bar and restaurant.

Members of the planning applications sub-committee raised few concerns, and no objectors spoke out at the meeting. Alderwoman Alison Gowman did question the high emissions linked to the project in comparison to other hotels. An officer explained that these emissions were attributed to the “significant constraints” of the site.