TOKYO—Government of Singapore Investment Corp. is among a handful of cash-rich buyers seeking to buy Grosvenor House Hotel, a London landmark, from Royal Bank of Scotland Group, people familiar with the matter said.

The hotel was expected to fetch a record price for a European hotel and flag the return of trophy asset sales to overseas buyers. The Grosvenor House Hotel carries a price tag of about £500 million ($727.1 million). This would make it the biggest amount garnered for a single European hotel, according to consultancy firm HVS.