Work is expected to start in the early part of 2014 on a 306-bed hotel by Dominvs and McAleer & Rushe on the site of the derelict employment exchange in Aytoun Street, Manchester.
Planning consent was granted last week for the proposed hotel next to the Rochdale Canal, to the rear of the Malmaison hotel.
The employment exchange building will be demolished and replaced with the new hotel, designed by Urban Innovations in two blocks rising to six and eight storeys.
Gerald Eve advised the developers. The hotel is scheduled to open by October 2015.