The landmark site will be transformed into 583 hotel bedrooms across seven floors with eight residential flats on the first floor and mezzanine levels, and more shops on the ground floor.

A brand new rooftop bar on the ninth floor will also be built.

The majority of the new 9 – 17 square metre hotel rooms will be styled as windowless ‘pods’ – a design concept offering compact and convenient accommodation in city centres.

Plans for a 471 room and subsequently a 495 room hotel on The Trocadero site were originally granted  permission in 2008 and 2010 respectively.

But contractors were wary of bidding because of the complications caused by building in the confined site above the amusement arcades on the lower floors.

The current proposals incorporate the space previously occupied by Funland, who left the site after the developer Criterion bought it in 2005. This has created 88 extra bedrooms.

Cllr Heather Acton said: “This scheme will help to breathe new life into one of London’s most famous buildings.

“The Trocadero is historically renowned for bringing entertainment to the city, and a new concept hotel will form a very welcome addition to the area, enabling more people to enjoy the vibrant West End for shopping, entertainment and culture.”

Since the late seventeenth century, The Trocadero has housed tennis courts, theatres, restaurants, hotels and music halls.

In the late 1990s, the Trocadero was home to the first 3D IMAX cinema in the UK, and a large amusement arcade called Segaworld, which became Funland in 1999.