Admiralty Arch to be transformed into luxury hotel

London's Admiralty Arch is to be turned into a luxury hotel after the government agreed to lease it out for £60 million.

The arch is a gateway between The Mall and Trafalgar Square and was built as a memorial to Queen Victoria. It has been leased for 99 years to development company which will transform it into a five star 100-bedroom hotel.

Cabinet minister Francis Maude said the government secured a good price: "The bars and restaurants will be open to the public... Obviously our main concern was to make sure the building is properly looked after, properly renovated and treated with the respect and affection it deserves."

Up to 100,000 visitors a year are expected to pass through the hotel.