Westminster City Council has approved plans to turn the iconic London location into 583 hotel rooms and eight flats.
The hotel rooms will occupy seven floors, while the residential flats – made up of one, two, and three bedroom apartments – will occupy the first floor and mezzanine level.
A new rooftop bar on the ninth floor and a number of shops on the ground floor will also be built.
The hotel rooms will be between nine and 17 square meters, with the majority being windowless ‘pods’.
Funland previously occupied the site, but left the site after it was bought by developer Criterion in 2005.
Councillor Heather Action said the scheme would “help to breathe new life into one of London’s most famous buildings”.
She added: “The Trocadero is historically renowned for bringing entertainment to the city, and a new concept hotel will form a very welcome addition.”
The site has played host over the years to everything from tennis courts, theatres, restaurants and hotels to music halls and the UK’s first 3D IMAX cinema in the UK.