WORK has begun on a £121 million regeneration of Greenwich Peninsula including a  19-storey hotel and new homes.

Greenwich Council Leader Councillor Chris Roberts and MP for Greenwich and Woolwich Nick Raynsford were kitted out in hard hats and high vis jackets at the construction ceremony hosted by Balfour Beatty and partners on the 7.6 acre site on July 19.

Five-star-hotel The InterContinental London The O2 will cover 4,800 sq m and boast Europe’s largest pillar-free ballroom, restaurants and a panoramic Sky Bar with views of Canary Wharf.

While a 23-storey high Peninsula Tower will stand nearby and offer 100 apartments funded by the Queensgate Investment Fund.

Mayor of London Boris Johnson said: "I warmly welcome the proposal to bring this prestigious development to London.

"The hotel would be a fantastic addition to the capital, and would bring substantial benefits for visitors to The O2 and the wider area, as well as securing additional benefits to the local economy and enhance the area’s reputation as a key visitor destination."

The scheme is part of the wider Greenwich Peninsular redevelopment which aims to offer 190 acres of new business and leisure space and more than 10,000 new homes by the summer of 2015.