Sir David Rowat Barclay and Sir Frederick Hugh Barclay have reportedly exchanged contracts to buy the lease for The Beaumont hotel in Mayfair from the Grosvenor Estate for between £125m and £140m.
The five-star 73-room hotel, which opened in 2014, was the first hotel project from restaurateurs Christopher Corbin and Jeremy King.
Owners of the Ritz, the Barclay brothers saw off other bidders at the auction, including Singapore-based Royal Group and Corbin & King, according to The Times.
Corbin & King designed the Beaumont and has operated the hotel since it opened. The decision by the Duke of Westminster's Grosvenor Estates to sell the lease to the Barclays is likely to result in the brothers' Ellerman Hotel Company taking over management of the property.
Grosvenor paid for much of the hotel's development, but according to The Times report, 'the estate's relationship with Corbin & King soured in 2016 when the Beaumont's financial performance proved less impressive than forecast'.
Grosvenor cancelled Corbin & King's lease and put the company on a contract to manage the property instead. Grosvenor appointed JLL to market the lease this year.