Custom House luxury hotel London: Custom House Approved as a Luxury Riverside Hotel — London’s Next Heritage Conversion Gets the Green Light

Custom House luxury hotel London has officially been approved, turning a Grade I-listed Thames landmark into a 179-room, hotel-led mixed-use destination with spa, dining, events space, and new riverside public realm access. The City of London Corporation’s Planning Applications Sub-Committee has unanimously approved plans to restore and convert Custom House, Lower Thames Street, into a 179-room, hotel-led mixed-use destination—opening major historic interiors and the riverside edge to the public in a way the building hasn’t offered for generations.

This is not a “hotel-only” approval. It’s a heritage conversion plus riverside place-making play—exactly the type of project that tends to lift a micro-district’s premium pull: luxury dining, high-value events, wellness, and cultural programming.

Custom House luxury hotel London: What the approval includes and why it matters

Planning permission was granted for a change of use from office to a hotel-led mixed-use building, including:

• Hotel (Use Class C1) — 179 rooms 

• Basement spa and health centre (approved as part of the mix)

• Ground-floor food & beverage, plus gallery and events spaces, and a public north–south route linking the street to the river

• A transformed riverside setting: multiple sources describe a new public quayside / riverside public space, including about 160 metres of direct river frontage 

  
  

The City of London’s own announcement frames the scheme as both restoration and public access, including the car park being reworked into a publicly accessible riverside space.

Why this approval matters in luxury business terms

1) It adds “destination gravity” to the City’s riverside edge

Custom House sits in a corridor where the City is increasingly trying to feel less “weekday-only.” A luxury hotel with events, premium F&B, and a spa is exactly the kind of anchor that supports:

• higher-value corporate stays

• weekend leisure demand

• luxury dining and cultural footfall

• brand activations and private events

  
  

That’s commercially significant because the City’s luxury ecosystem has historically been thinner after office hours—and projects like this help rebalance that.

2) Heritage conversions are becoming the luxury playbook

High-end travellers increasingly pay for story, provenance, and uniqueness—and heritage buildings offer a defensible advantage over “new luxury.” The approved scheme’s positioning is explicitly heritage-led, with consultation and research highlighted in coverage.

3) Public realm is now part of the luxury value equation

Luxury hospitality in London is no longer only about what happens behind the lobby doors. The project’s public route through the building, new riverside public space, and cultural/gallery elements expand its relevance beyond hotel guests—supporting long-term brand and district value.

The deal story: a long route, now a reset

Reporting notes this approval comes after a “long and testing route,” with the developer (Jastar Capital, via its project vehicle) securing the key consent needed to move forward. The Evening Standard also notes an earlier proposal associated with the site was rejected on appeal in 2022, underscoring why this fresh approval is meaningful.

What to watch next (the 2026 signal)

Industry and project statements indicate work is expected to start in 2026, which makes this a real near-term pipeline story—especially for London’s luxury hotel market and the Thames Path experience around the City.