Hotel operator Motel One has secured planning permission for an eight storey 290-bed hotel on Cross Street in Manchester city centre.
Development plans on the 2.7-acre site include the demolition of the 37,000 sq ft Commercial Buildings at 11-15 Cross Street, although the façade will be retained. Along with the hotel, there will also be a ground floor restaurant, a shop unit, and basement parking for 25 cars.
The building was sold for £5.1m in April 2013 by Aberdeen Asset Management to a private investor.
Contractors are already on site building a 330-bed budget hotel for Motel One on Whitworth Street.
Motel One has 45 hotels in Germany, Austria and Belgium, and opened its first UK hotel in Edinburgh in 2012. The hotel operator is also planning another in Edinburgh, one in Glasgow and one in London.
Russells Construction is the contractor and Stephenson: ISA Studio is the architect for the scheme.
In a report prepared for the planning committee, council officers said: "The proposed hotel would provide life and vitality into this part of the city and should generate spin-off benefits within adjoining regeneration areas and complement existing uses in the area.
"The development would provide a well-designed building which would enhance the street scene and the character of the adjacent listed buildings and the adjacent conservation area."