Zedwell to open new hotel at Bank Junction in historic London landmark building

Zedwell has confirmed plans to open a new hotel in the heart of London’s financial district, converting a historic building at Bank Junction into a modern hospitality destination. The development will transform 1 Princes Street, a prominent Grade II listed property located next to key landmarks including the Bank of England and the Royal Exchange. The project reflects growing demand for centrally located accommodation in the City of London, particularly as business travel and tourism continue to recover, while also highlighting a broader trend of repurposing historic buildings for contemporary use.

The property, originally constructed in 1929 as the headquarters of National Westminster Bank, was designed by architect Sir Edwin Cooper and is known for its distinctive Portland stone façade and grand architectural features. Zedwell plans to preserve these historic elements, including the original banking hall and domed ceiling, while integrating its signature hotel concept into the space. The development will span approximately 80,000 square feet, making it a significant addition to the company’s expanding portfolio across key urban locations.

The hotel will feature Zedwell’s signature cocoon style rooms, designed to offer a quiet and restful environment in busy city settings. These rooms will include advanced soundproofing, purified air systems, and ambient lighting aimed at enhancing guest comfort. In line with its digital first approach, the hotel will offer self check in and digital key access, supported by round the clock AI powered assistance. This model reflects a shift in the hospitality industry toward automation and streamlined guest experiences, particularly in high density urban environments.

Company executives said the project is intended to balance heritage preservation with modern hospitality needs, while also addressing a gap in the market for affordable yet high quality accommodation in central London. The location is expected to attract a mix of business travelers, tourists, and local visitors seeking convenient access to the city’s financial and cultural institutions. The company also plans to incorporate public exhibitions and community focused events within the space, creating a multifunctional environment that extends beyond traditional hotel use.

The announcement forms part of a broader expansion strategy by Zedwell, which is backed by Criterion Capital. The group has recently secured additional hotel sites in cities such as Oxford and York, as well as other locations within London. Its pipeline includes plans for more than 9,000 rooms by 2028, indicating an ambitious growth trajectory focused on major gateway cities where accommodation supply remains limited. This expansion reflects increasing competition within the UK hospitality sector, particularly in the budget and mid range segments.

Zedwell has already made a notable impact in the London market with the launch of a large capsule style hotel in Piccadilly Circus, aimed at disrupting traditional budget accommodation models. The company’s approach combines compact room design with technology driven services, appealing to travelers seeking efficiency and affordability. Industry analysts note that this model aligns with changing consumer preferences, especially among younger travelers and those prioritizing location and convenience over luxury amenities.

Construction and development timelines for the Bank Junction property are expected to progress alongside regulatory approvals and restoration work required for the listed building. As the project moves forward, it is likely to draw attention as a landmark redevelopment within one of London’s most historic and commercially significant areas. The opening will mark another step in Zedwell’s effort to redefine urban hospitality while preserving the architectural heritage of central London.