'WHEN it's three o'clock in New York, it's still 1938 in London." Bette Midler made that quip about London in 1978, when the city was in the grip of punk, the IRA and one of its periods of decline.

I know that is a London that's long gone; I see the new shining city on the news and in the papers. Still, arriving on the Gatwick Express train after an easyJet flight from Glasgow is a bit of a shock. It was more than 15 years since I was last in London, and that was in the aftermath of Princess Diana's death when the city was wallowing in an orgy of grief and recrimination.

Today, the great imperial city has found its swagger again. Once run-down areas such as King's Cross have been transformed, the hottest neighbourhoods - Peckham being the latest - are over before the first speakeasy selling cocktails in jam jars opens, and everywhere there are thrusting new skyscrapers with irreverent nicknames such as the Gherkin or the Shard.

Whether you think London is a sun we can all bask in, or a moon-like metropolis whose gravitational pull sucks in talent and gives nothing back but its cold reflected glory, the city dominates Britain as never before.

It may have lost its empire - and said goodbye to Cool Britannia - but it has found a new role as a global city, drawing in money and visitors from around the world, while retaining its status as the place where the establishment work, live and play. It is no surprise that Scotland's pro-independence supporters vent their anger at London (or Westminster) but very rarely at England. Awash with Russian money and poor migrants from around the world, it really is another country.

We were staying at one of the world's most famous hotels: The Dorchester on Park Lane, which opened in 1931, when nearly a quarter of the world's population owed allegiance to the British Empire. The five-star hotel was an immediate sensation for the stars of the day, from Noel Coward to Cole Porter, and for those who ran the empire. It was the place to be.

During the Second World War it was reputed to be one of the safest buildings in London due to its use of reinforced concrete. It was claimed to be bomb-proof and earthquake-proof and it only suffered a couple of broken windows in the Blitz - despite it surely being a prime target for the Luftwaffe. During those years, it must have been a hotbed of intrigue - General Dwight D Eisenhower took a suite on the first floor and it's easy to imagine spies stalking its corridors.

To photographer Cecile Beaton it was "a building in which the respectable and the dubious mixed by the thousand, knocking back cocktails and careless talk". These famous names may be dead and gone but the hotel mirrors how the city adapts and reinvents itself - and still holds our attention. In fiction, William Boyd's recent James Bond novel Solo opens with 007 celebrating his 45th birthday with a meal at the Dorchester.

When we arrive, there is a spectacular African wedding taking place - The Dorchester may be one of the world's most expensive hotels but it is not stuffy or stuck in the past. It is now a favourite of footballers, as well as pop stars and actors, and it has moved with the times to include a high-end spa and gym.

Walking up Park Lane from the Hyde Park Corner tube station, I let my eyes wander over the motors in the small car park outside the Art Deco building. There are no Rolls-Royces but there is a Ferrari and a Lamborghini. New money obviously loves this place as much as old money.

The doorman, impeccable in top hat and tails, greets us warmly, despite the backpacks, and we are upgraded, as it's a press trip, to a Park suite. Opulent does not begin to describe it.

It's exquisitely furnished and retains a 1930s ambience. It has two bathrooms, clad in Italian marble, and its triple-glazed windows look across Regent's Park. It's hard not to wonder if some of the famous figures from the hotel's past, from Somerset Maugham to Elizabeth Taylor and Richard Burton, stayed in this very suite. It's intoxicating, but not overpowering, thanks to the welcoming staff.

As befits one of the world's most renowned hotels there is a range of restaurants, from British to contemporary French, and stylish bars. We eat at The Grill, which will be reopening shortly after a refurbishment. The food - modern British - is superb but what makes it special is the people-spotting potential: you really don't know who could be sitting at the next table.

My favourite space is the opulent Promenade, known for its floral displays, where afternoon tea is served. Now, £45 for sandwiches, scones and tea is not cheap but then it's not supposed to be. This is a chance to treat yourself; to see how the other 1% live, if only for an afternoon or an evening.

Garry Scott stayed at The Dorchester, Park Lane, London, in a Park suite, which costs £3,198 per night. Superior King Rooms cost from £295 for two including breakfast. See www.dorchestercollection.com or phone 0207 629 8888.