Robert De Niro was set to be the joint operator of the project alongside BD Hotels, founded by real estate gurus Ira Drukier and Richard Born who run the Greenwich in Manhattan’s fashionable Tribeca district.
Drukier said “a changing economic picture” made the project “marginal”. He added that “if the economics were to change we would be very happy to move forward”.
The hotel was due to take up an entire block on the Strand side of Covent Garden across six Victorian and early 20th-century buildings.
Covent Garden’s main landlord, property firm Capco, said: “We have not reached satisfactory commercial terms with BD Hotels. The Wellington is a unique investment opportunity and we are reviewing our plans, which include proposals for office and retail space.”