Manchester City Council has approved plans for a hotel to be built on the site abandoned by Bashar Issa on Dale Street.
Property Alliance Group proposes a 12-storey Premier Inn hotel with 193 bedrooms. PAG bought the site from administrators KPMG, acting on behalf of Bank of Ireland, which was owed £17m by Issa Developments before it failed.
Sarah Tower started on site before the recession but never got passed the start of the steel frame erection. This will be dismantled and the new block built in its place on the corner of Lena Street and Dale Street.
Russells Construction was instructed as contractor to build the hotel and is expected to start immediately with practical completion due early 2012.
The hotel will be the fourth Premier Inn in Manchester city centre.