Property company Frogmore has been given the green light to develop a new 80-bedroom hotel in central London, which will be run by restaurant operator D&D London as part of a 35-year lease agreement.

Plans for the 72,000sq ft (6,689sq m) property, which were drawn up by Allies and Morrison, were approved by the London Borough of Islington and include a bar and grill and a rooftop restaurant and bar with an outdoor terrace. Located on South Place near Moorgate, the hotel will also feature events and meeting space and conference facilities. Conran and Partners, owned by D&D London's majority shareholder Sir Terence Conran, will design the property's interior.

Demolition work on the site's existing structures is expected to get underway later this year ahead of the start of construction work on the hotel, which is due to be completed by summer 2012. Frogmore managing director Paul White said: "The hotel will be just what this location needs and will mark the next stage of regeneration in the area. D&D has the perfect background for this luxury development and securing their commitment on a long-term basis is a major coup for Frogmore."

Vicky Thornton of Allies and Morrison added: "We hope the hotel will, as a result, be not only a sustainable addition to the neighbourhood but also improve the unity of the streetscape."