London’s Trocadero centre is to be turned into 500-room pod hotel managed by Accor Hotels and offering budget rooms in the heart of town.

The “Piccadilly Hotel” would be modelled on the Pod Hotel in New York. The aim would be to “offer a boutique experience at a no-frills price”, whilst also rejuvenating the flagging landmark building.

Plans are being submitted to Westminister Council this week to transform the Grade II listed building, according to The Evening Standard.

The Trocadero plan would be a boost for property investor Asif Aziz, whose Golfrate Holdings purchased the building for £225 million in 2005.

Despite its prime location at Piccadilly Circus, the Trocadero has been struggling to attract tenants over the past few years. In January it lost Planet Hollywood after 16 years of tenancy, when it moved to a new £5m premises in Haymarket. The floors above level 3 have been vacant since Segaworld moved out in 2005.

Westminster’s report raises concerns over the lack of natural light and ventilation in rooms. But adds: “It will provide affordable accommodation for visitors to this part of London.”

Rooms would be 12 or 17 square metres. All 495 rooms would be ensuite, and grouped around internal courtyards. Corridors would run around the outside of the building.

New York’s Pod Hotel has a loyal following among travellers and critics. It is described by its operator BD Hotels as a “budget-minded traveller’s dream come true”, with rooms from about £70 a night.

The hotel has been reviewed more than 1,100 times on travel website Tripadvisor - and scored an approval rating of 88 percent, making it one of the most popular in the city.