The property, which is located on Hyde Park Corner in London, is scheduled to re-open in the fourth quarter of 2014.
The renovation and refurbishment will apply to all areas of the hotel, including the 93 guest rooms and all public areas, including The Library Bar and Apsleys Restaurant.
The hotel is part of Starwood’s St Regis group.
The Lanesborough will be holding an auction of existing furnishings and artefacts from 9-13 December.
Geoffrey Gelardi, managing director of The Lanesborough, said: "This marks an unprecedented renovation project for the hotel, which brings with it the opportunity to purchase a piece of the hotel's history at auction as we pave the way for a new chapter for The Lanesborough."