Video: Admiralty Arch to become luxury hotel in £60 million deal Historic landmark Admiralty Arch is to be turned into a luxury hotel after the government agreed to lease it out for £60 million. The ceremonial gateway between The Mall and Trafalgar Square, which was built as a memorial to Queen Victoria, has been leased for 99 years to development company Prime Investors Capital (PIC). It wants to transform the building into a five star 100-bedroom hotel complete with royal and presidential suites, a ballroom, spa and fine dining restaurant. Residential apartments are also planned for the first and second floors on the north side of the arch. The deal is dependent on Westminster City Council granting planning permission for the multi-million pound conversion of the Grade I listed building. Cabinet minister Francis Maude insisted the government had secured a "good price" for the building and dismissed claims it would become the preserve of the super rich. It's a really great shame that in the 100 years since it was opened there has been virtually no public access to the arch outside of government officials. When we came into office in May 2010 it was clear that without significant renovation, the arch was at risk of falling into disrepair. This would have been a tragic waste of a historic building. We were determined to find a real purpose to Admiralty Arch, one that would preserve it for future generations and would generate value for the taxpayer. The arch was commissioned by King Edward VII as a tribute to his mother Queen Victoria and was completed in 1912.