Why grand civic buildings can make exceptional luxury hotels

This is one of a growing number of civic buildings granted a new lease of life thanks to the continued strength of the luxury hotel market in the capital. While the adaptive reuse of government buildings isn’t entirely new, for example, County Hall on London’s Southbank became a Marriott back in 1998, the recent surge in demand for high end stays has accelerated the trend from civic to chic.

Luxury hotels continue to outperform other segments in London, with the highest revenue per available room (RevPAR) increases year-to-date (up 2.46% to April 2025 versus 2024), bucking the city wide decline of 2.13%, which is a reflection of normalising performance post pandemic. The resilience of the luxury sector is fuelling a pipeline of ambitious developments. 

Plans are in motion to convert Custom House, a Grade I listed riverside site, into a 179 room luxury hotel. Admiralty Arch is on track to open as a 100 key Waldorf Astoria in 2026, with Hilton reportedly facing over a dozen competitors to manage it. Meanwhile, the former Wood Street Police Station will soon be transformed into a 216 key five-star boutique hotel.

So, why are these buildings such a good fit for luxury hospitality?

Civic buildings, with their central locations and architectural grandeur, are inherently suited to luxury conversions. Their features such as impressive staircases, high ceilings, and ornate facades evoke a quality feel, making them attractive to luxury hotel brands and guests alike.

The irregularity of their floorplates, offering a mix of room sizes and layouts, may deter uniform hotel chains that rely on standardised configurations. However, this is a strength for luxury operators, which can use the floorplates to create a variety of rooms, from elegant standard rooms to expansive suites.

While conversion costs can be substantial, especially for listed properties, the potential for premium daily rates makes investments viable, and for operators with a long term vision, the initial capital expenditure can be offset by strong future cash flows.

Beyond central London

Civic reinvention continues beyond Zone 1. Hornsey Town Hall is being reborn as a four star, all-suite hotel. The former Camden Town Hall reopened as The Standard, a 270 bed luxury boutique hotel in 2019. Fulham Town Hall and Bethnal Green’s old council HQ have also been reimagined as luxury stays. And, it’s not only the grand town halls: police stations and even firehouses are starting to appear on developers’ radars.

While London has seen continued growth in the luxury RevPAR, luxury hotels are outperforming regionally as well. UK-wide, luxury RevPAR is up 3.66% for the year to April 2025, compared to 2024, significantly outpacing the overall market, which has seen a -0.36% decrease.

While there are some examples of civic-to-hotel conversions in regional cities, such as The Municipal Hotel Liverpool – MGallery Collection, a 179 key luxury hotel housed in the city’s former council offices, examples outside of London remain relatively few. Certain Northern markets, namely those with strong touristic pull, could present an opportunity for underused civic architecture to be converted to luxury stays. As such, this could be fertile ground for investors looking to capitalise on a growing demand for high end, experience led stays beyond the capital.

Further information

Contact Emmeline Blellock

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