AEG Europe has confirmed that it has submitted a planning application to Greenwich Council for the development of a new 450-bedroom hotel next to London's O2 Arena.

Outline planning consent has already been obtained for the site next to the venue, which will see the Lifschutz Davidson Sandilands-designed property boast serviced apartments and a large event space. AEG is now working with a shortlist of potential operators for the four-star hotel, which will provide banqueting facilities for up to 3,000 people and forms part of the wider regeneration of the Greenwich Peninsula.

David Campbell, chief executive officer of AEG Europe, said: "The O2 has already created more than 2,500 direct jobs in Greenwich. However the real economic prize for Greenwich and East London is adding overnight visitors. "The creation of this hotel, alongside high quality event space to match our established world class entertainment space, is not without challenges, but it is a project we embrace enthusiastically."

Alistair Wood, AEG's executive director for real estate and development, added: "There remains a significant lack of hotel space in this area, and a high quality hotel built alongside the venue will be welcomed by the more than 7.5 million annual visitors to the O2."