Manchester Property Holdings has awarded Russells Construction with an £8.7m contract to build a 147 bed Holiday Inn Express hotel on Oxford Road, Manchester city centre.
Andrew Russell, managing director of Trafford-based Russells Construction, said: "We were up against some well known names for this contract and I was delighted to have won the tender. I believe it was the ability to demonstrate our commitment to high quality delivery and our professional approach which has enabled us to build the relationship to secure this contract.
"The hotel sector is an area of our portfolio we have been keen to develop. This will be our tallest, most high profile building to date and we have put together a highly skilled team in order to deliver the project."
Work on the demolition of the existing building, on the corner of Hulme Street, began earlier this year.
Construction of the new eleven-storey hotel is expected to take 15 months and is due to finish in spring 2010.