The Savoy hotel in London is to undergo a refurbishment, reportedly worth up to £100m, in a move that may see the historic building close its doors for the first time in 117 years.

The plans to close the hotel – located on The Strand – during the works, have prompted fears of redundancies.

Pam Carter, a spokesperson for the Savoy, has been quoted as saying: “It is possible the hotel could close for a year.

“The renovation programme is due to start at the end of 2007 and will involve a redesign of the Thames Foyer and River Restaurant and the refurbishment of two-thirds of the 263 bedrooms and suites, plus all the corridors.”

However, Carter told Leisure Opportunities that “no decision has yet been made to close the hotel”.

The hotel was bought last year by Prince Al Waleed bin Talal, who owns Kingdom Holding Company, and renamed The Savoy, A Fairmont Hotel.