Bardsley Construction has started on site with the second AC Hotel by Marriott in Manchester, designed by SimpsonHaugh & Partners.
The Tameside-based family-owned firm was awarded the £15.5m contract by Axcel Hospitality.
The four-star hotel is being constructed by Bardsley on a former surface car park bounded by Mason Street and Cable Street in Ancoats, and is expected to open in early 2019.
Rising to nine storeys, it totals 172 rooms, gym, café, restaurant, bar and meeting/conference facilities.
AC Hotels by Marriott, part of Marriott International, has more than 100 hotels throughout Europe and the US, and opened its first in the UK in Birmingham and Salford Quays last year.
The brand targets business travellers, with average room rates of £100 per person, per night.
Other firms advising on the scheme include project manager and quantity surveyor Axiom Project Services, structural engineer Quattro, mechanical and electrical specialist and fire engineer Cundall, and pre-cast manufacturer F P McCann.
Ged Rooney, procurement director at Bardsley Construction, said: “It’s some years since Bardsley was involved in the construction of a hotel on this scale, so we see this prestigious contract with Axcel and AC Hotels as an expansion into a new market for us, and a natural extension to our extensive residential sector experience.
“Demand for new hotels is buoyant with the requirement for quality and affordable leisure accommodation rising in line with the world getting smaller thanks to ever improving transport links such as the ongoing expansion of routes at Manchester Airport.”