London’s famous Claridge’s hotel has been put up for sale – with analysts estimating it could fetch up to £300m.

The 203-room Mayfair hotel – part of the Savoy Group – has officially been put on the market by its owners Blackstone, a US-based private investment bank, and Colony Capital, who paid £520m for the Savoy Group in 1998.

Blackstone and Colony Capital have appointed Deutsche Bank and Jones Lang LaSalle as advisers to review the marketplace with a view to the Claridge’s sale.

Over the past seven years, £55m has been invested in Claridge’s to ensure the hotel is now fully modernised in terms of structural and functional modifications.

Potential Claridge’s buyers could include hotelier, Sir Rocco Forte and Saudi investor, Prince Alwaleed, while consortium bids from existing hotel operators could also be expected.

President of Blackstone real estate advisors, John Kukral, said: “In the five years since we acquired the Savoy Group we have invested considerable time and money in consolidating Claridge’s position as one of the world’s leading luxury hotels. Throughout this time we have received a variety of levels of interest in the hotel, which until now we have not pursued.

“However, in recent months, this interest has increased and ties into the fact that the hotel is now complete in terms of any structural modernisation. In addition, the investor appetite for quality, freehold investments in the west end of London is very deep at this time. I should also stress that no firm decision has been taken at this stage and we will provide a further update once a full review has been completed.”

In a recent statement, Blackstone and Colony Capital confirmed that they remain committed to the rest of the hotels within the Savoy Group and will continue to work with the current hotel management on a range of modernisation and refurbishment programmes to improve each hotel’s offering and value. Details: www.the-savoy-group.com