Planet Hollywood moves from the Trocadero to the West End

The restaurant chain will leave the Piccadilly leisure complex after 16 years to move around the corner to a larger venue in Haymarket.

The departure will raise fears over the future of the Trocadero, which has struggled to attract tenants.

Planet Hollywood opened in 1993 to great fanfare with more than 10,000 people queuing to get a glimpse of some of the biggest stars of the day.

As well as its investors - Arnold Schwarzenegger, Sylvester Stallone and Bruce Willis - the guest list for one of the most eagerly anticipated showbusiness parties the capital had ever seen included Mel Gibson, Demi Moore, Melanie Griffith, Don Johnson, Michael J Fox, Christopher Reeve and Charlie Sheen. But its founder, billionaire Robert Earl, has revealed he will sever ties with the Trocadero when Planet Hollywood closes its doors at the end of the month.

The chain will relocate to a three-floor, 280-seater venue at the site of the former Burberry headquarters. It is due to open with a VIP party in April, featuring some of the current batch of Hollywood stars.

Mr Earl said: "I am greatly looking forward to the relocation. The new site gives us the opportunity to showcase the brand as we move forward in 2009.

"The restaurant will become the flagship of the group and I plan to emulate the success we have achieved with our casino in Las Vegas in my home town of London."

Mr Earl opened a $1billion Planet Hollywood casino in 2007 with Barbra Streisand performing at a lavish ceremony. He also owns the West End casino Fifty in addition to 24 other restaurants across the globe.

The new Planet Hollywood will house five dining rooms, a late bar and a private VIP entrance, and will incorporate its merchandise store, which is presently a stand-alone store at the entrance to the Trocadero, into the restaurant.

The venue's departure comes at a difficult time for the Trocadero, which has struggled to attract tenants. Property investor Asif Aziz, whose Golfrate Holdings purchased the building for £225million in 2005, promised to turn its fortunes around with a major redevelopment.

He announced he wanted to gut the building and create a 600-bedroom hotel and shopping centre before the 2012 Olympics. But there has been no construction work at the site and sources said Golfrate had wanted Planet Hollywood to renew its lease.

Golfrate was unavailable for comment.