City & Country Hotels will operate a new boutique hotel in central London owned by Arab Investments.

The 45-bedroom Ten Manchester Street hotel, which has been designed by architects The Frederick Gibberd Partnership, will offer guests a lounge bar and an outdoor smoking cigar lounge with terrace.

"The location coupled with the design and interiors of Ten Manchester Street have exceeded our expectations and with Bespoke managing and marketing the property we have no doubt our hotel will thrive even in these challenging times," said Khalid Affra, managing director of Arab Investments.

Haydn Fentum, chief executive of Bespoke Hotels, added: "We launched Bermondsey Square Hotel right in the midst of the recession earlier this year to critical acclaim.

"Therefore we are excited about what impact the design and luxury product Ten Manchester Street will have on the market; it really is an exceptional property to have in the Bespoke portfolio."