The building, which comprises a seven storey full street block by Grosvenor Gardens near Victoria Station, will also have shops and restaurants at ground floor and basement level. The scheme will be carried out by developer Oakvest, which purchased the 125,000 square feet building in 2011.
The building, which was formerly named Belgrave Mansions, was completed in 1868 as the first serviced apartment building in London. It was converted into a hotel in the 1920s and subsequently into offices in the 1930s.
The Council said in its committee report (64-page / 14MB PDF) that the developer had demonstrated that provision of any on site affordable housing in line with local policy would render the scheme unviable.
It said an agreement had been made for the developer to make a £7.1 million financial contribution to the Council's affordable housing fund instead.
Oakvest said in a statement that it expects the scheme to complete in 2016.
