DUBAI: Hypermarkets operator Lulu Group International has paid £110 million (AED626.6 million) for Great Scotland Yard in London as the company expands into hotel development.

It plans to turn the former headquarters of the Metropolitan Police into a luxury hotel.

The deal includes an adjoining listed Victorian town house that would be designed as an entertainment suite for the hotel.

LuLu in April emerged as the front runner to acquire the Edwardian property in Whitehall.

“The future growth markets for us in the hospitality sector includes Britain, Middle East, India and South East Asia,” a LuLu spokesman was quoted as saying in media reports.

“Since we are now firmly established in the retail sector, we want to diversify into the hospitality sector as these two are complementary.”

LuLu expects to open hypermarkets in Malaysia and Indonesia toward year-end.

It currently runs 117 retail outlets in the Middle East and India.

The 233-room hotel at Great Scotland Yard is expected to open in the first quarter of 2017.

LuLu bought the property from the London-based property developer Galliard Homes.