London's prestigious Grosvenor House hotel has collapsed into administration after its jailed Indian owner failed to remortgage the property in a desperate attempt to raise £1billion to pay for his bail.

Deloitte said it had been appointed administrator of Sahara Grosvenor House Hospitality, which owns the long leasehold to the five-star hotel in Park Lane.

The venue is operated by Marriott and day-to-day running of the hotel will continue unaffected.

Grosvenor House is operated by Marriott and day-to-day running of the hotel will continue unaffected.

Indian tycoon Subrata Roy, who built a billion-pound media and property empire from the back of a Lambretta, bought the lease in 2010 for £470million.

However, he was jailed for contempt of court last year after failing to show up and defend himself against fraud allegations.

He had failed to return £2.1billion to investors who were sold illegal bonds.

Roy, whose homes include replicas of the White House and Buckingham Place, attempted to remortgage properties in London and New York from his prison cell in Delhi to pay what is one of the world’s biggest bail sums.