Planning consent has been granted to London-based J&M Hospitality Consultants for the renovation of Union House in central Liverpool into a 30-room hotel.
Architects Falconer Chester Hall's designs include a bar at lower ground floor level and a 90-cover restaurant in the basement. The grade II-listed property in Victoria Street was built in 1882 as an office building.
Situated within the Castle Street conservation area, the design retains historic features such as the ornate iron balustered staircase, mahogany doorways and paneled ceilings.
Adam Hall, managing director of Falconer Chester Hall, said: "Union House is an extremely well known and well situated building in the city, and is deserving of a high quality transformation.
"It adds to our portfolio of successful hotel designs and transformations and we are looking forward to seeing this project through to its conclusion."
Work is expected to start on site in the autumn and to be completed by spring 2013.