Planners in Camden, north London, have granted permission for the £150m restoration and refurbishment of the former Midland Grand Hotel at St Pancras Station, now known as St Pancras Chambers.

The go-ahead follows an application submitted by the Manhattan Loft Corporation (MLC) and London Continental Railways (LCR) in July last year. The architects are RHWL and Richard Griffiths Architects.

St Pancras Chambers is controlled by LCR, which is responsible for the development of the Channel Tunnel Rail Link and the international station at St Pancras. MLC will be responsible for the development of the whole project.

The development team will restore the grade I-listed Victorian landmark building by bringing the majority of it back to its original use. It will work closely with Camden council, English Heritage and the Victorian Society.

The planning permission allows for a five-star, 245-bed hotel with two restaurants, two bars, a health and leisure centre, a ballroom and 20 meeting and function rooms, and 68 apartments.

The scheme will not alter the external appearance of the original building. All the internal rooms of historic significance will be restored to their former glory with appropriate public access.

The hotel was designed and built between 1868 and 1876 by Sir George Gilbert Scott, who also designed the Foreign and Colonial Office in Whitehall and the Albert Memorial in Hyde Park.

It is often cited as one of the nation’s most loved and recognisable buildings, but has been deteriorating since its closure as a hotel in 1935. It was used as offices by British Railways until the early 1980s, when it became vacant.

Angus Boag, MLC managing director, said the scheme provided a delicate balance between restoration and commercial viability. He said: “This is a complex building, which needs a lot of attention. We have consequently created a comprehensive mixed-use proposal that addresses the issues facing the building today.”