Galliford Try has started work on a £12m mixed-use scheme in Ancoats which includes a hotel and speculative office space.
It is working on a 150-bed hotel for Etap and 20,000 sq ft of offices with retail units on the ground floor on the corner of Great Ancoats St and Pollard St.
Project manager, Peter Jackson of Cre8, told Place that Galliford hoped to have both buildings finished by November 2012.
The developer is Royal London Property Fund, part of Royal London Asset Management.
Manchester-based architects 5plus designed the scheme. The consulting engineers are Shepherd Gilmour and Cundall.
Jackson said work on the second phase, which has outline planning for 50,000 sq ft of office and retail, should start in early 2013. This part has a development value of £8m.
Galliford's northern construction chief Bob Merriman said: "Winning this contract underlines our commitment and ability to secure commercial projects in the North West from our office in Warrington. The mixed-use scheme is a significant development for the East Manchester area and we are looking forward to bringing the client's vision to reality."