The Ascott Group has bought Turnstile House on High Holborn from Land Securities, Property Week has reported.
The group is the property’s current tenant and operates the 83,400 sq ft building as a 192 bedroom serviced residence.
"Holborn has become a vibrant district and this buildings location on the doorstep of Covent Garden and with great public transport links has made it a very attractive proposition as a hotel," said head of investment management for Land Securities’ London portfolio, Richard Linnell.
The area has attracted a number of companies from the finance and media sectors, its new owner claimed.
"With the shortage of international class serviced residences to cater to the strong demand, we expect our property to continue to do well," Gerald Lee, Ascotts deputy chief executive officer said.
Land Securities sold the commercial property as it "no longer fits our main focus of activity", Mr Linnell added.
Despite falling values, commercial property in London remains in demand with buyers looking to negotiate deals.