Developer CLS Holdings has selected the two to submit final bids in a two-stage tender process to build the 180,000 sq ft Spring Mews scheme.
The £30m build will include 408-bed student accommodation and a 120-bed budget hotel. Around these the developer also aims to build 30,000 sq ft of shopping and 50,000 sq ft of offices as well as a replacement community centre.
Work is expected to start in the spring on a three-year build programme.
Sten Mortstedt, Executive Chairman of CLS, said: ”These mixed-use proposals can provide substantial investment and regeneration into the Vauxhall area while meeting the significant demand for student accommodation and hotel rooms in central London.”