Mace, ISG and Sisk battle for Cafe Royal

A trio of contractors is battling it out for the prestigious contract to turn London's landmark Café Royal into a five-star luxury hotel.

Mace, ISG and Sisk are expecting to hear from Israeli client Alrov next week who has won the construction management deal.

Bovis Lend Lease was also chasing the job, but failed to make the shortlist.

Contract Journal understands the deal is worth around £100m to transform the Café Royal into a luxury 25,000m² hotel containing 160 rooms, spa and gym.

David Chipperfield Architects is currently putting the finishing touches to designs, with work due to start this summer and be finished ahead of the 2012 Olympics.

Mace is understood to be on site already overseeing enabling works, which could put the firm in pole position.

A project source said: "The client won't be just looking at price. This is a landmark job and will attract a lot of attention.

"Going down the construction management route means it's all about getting the right team of trade contractors on board to ensure things run smoothly."

The new hotel is part of the Quadrant development which is the biggest component of a £750m investment in redeveloping Regent Street.

The hotel is officially known as Quadrant 2 and Sir Robert McAlpine is currently working as construction manager on Quadrant 3, where the old Regent Palace hotel is being demolished and transformed into a major mixed-use development.

Further works in the area include a new pedestrianised arcade and a hi-tech diagonal street crossing.