The Montcalm Hotel Nikko London will be redeveloped thanks to a £30m funding package provided by the Royal Bank of Scotland.

It is understood that Oakdene Group, a subsidiary of Montcalm Holdings, plan to upgrade the 120-bedroom Grade II-listed hotel to a 135-bedroom boutique property. The renovation will also include an atrium, spa, gym, restaurant and bar.

The finance package includes the funds for the initial purchase of the hotel and a capital expenditure facility to support the refurbishment.

The new hotel is expected to open in late 2009 and Nikko Hotels International will continue to operate the hotel.