According to the Financial Times, the Thai-based group and its Austrian real estate company the Signa Group also want to redevelop the store’s food hall as part of a major refurbishment of the site.
The Oxford Street site previously included a luxury hotel which closed in 2008, with the space remaining vacant ever since.
Speaking to the FT, Signa’s executive chair, Dieter Berninghaus, said the creation of the hotel will create a “significant value upside potential”.
The news comes after the Central Group acquired Selfridges in a £4bn deal announced on Christmas Eve.
At the time Tos Chirathivat, executive chairman and CEO of Central, said: “It is a privilege to be acquiring Selfridges Group, including the flagship Oxford Street store, which has been at the centre of London’s most famous shopping street for over 100 years.
“As family businesses, Central and Signa will focus on delivering exceptional and inclusive store and digital experiences for both local residents and overseas visitors alike, to ensure we can give all the stores in Selfridges Group a bright future for the next 100 years.”
He added: “We are looking forward to working with the management teams and the colleagues across Selfridges Group, as we seek to create a world-leading luxury, retail company.”