The Oldham-based contractor has been appointed to refurbish the 17th century building on the banks of the River Leven in Newby Bridge, extending the hotel and upgrading its spa facilities.
The £4.6m project includes a 28-bedroom extension and enhanced spa facilities and is due to be completed by next autumn.
The revamped spa will include a thermal mud bath, a hydrotherapy pool, steam room, sauna, two external spa units, and treatment rooms.
The existing pool will be retained and used as a family-friendly swimming pool.
Johnston Parke Interiors is the interior designer for the project.
Medlock FRB will also reconfigure the hotel’s entrance as part of the project and add further car parking spaces to the existing car park.
Dan Lewis, director of Medlock FRB, said: “The Swan hotel is one of the oldest and most iconic hotels in the Lake District, and this rich heritage is at the heart of the new bedroom and spa extension.”
James Houlston, managing director of BH Group, said: “The project will provide a major boost to the local area in terms of employment and tourism. We hope to deliver what will be one of the leading spa resorts in the North West.”
In July, the hotel’s owner BH Group was awarded funding for the refurbishment, a deal brokered through CBRE Global Investors.
The Swan is one of several hotels owned by BH Group, including Hotel Indigo near Manchester Victoria station, Mamucium in Manchester, and the Hampton by Hilton in Blackpool.