Russells Construction has secured a second contract with Motel One in Manchester, to build a 298-room hotel in Cross Street.
Work on the new hotel is due to start in March 2015 and take two years to complete. The hotel was designed jointly by architects stephenson:ISA Studio and Leach Rhodes Walker.
Vacant office space to the rear will be demolished to make way for the hotel; the historic stone façade will be retained.
Russells is currently nearing completion of the Motel One in Piccadilly.
Stefan Lenze, head of development at Motel One, said: "We are very pleased to have secured this fantastic site in the centre of Manchester. Russells' work at our Motel One in Manchester Piccadilly gives us confidence that it has the local knowledge and expertise to ensure that our next Manchester venue is delivered on time and to our exact specification."
Director Gareth Russell added: "Picking up our second contract for Motel One is testament to the standard of work we are delivering in Piccadilly and builds on our reputation for constructing hotels in constrained city centre locations."
Dominic Pozzoni from Property Alliance Group, which identified the site for Motel One, said: "Cross Street offers Motel One a prime city centre location, ideal for its growing portfolio of UK hotels. The new facility will complement its Piccadilly offering and meet the growing demand for budget hotel rooms in Manchester city centre."
The new Motel One in Piccadilly is due to open in the spring. The 330-bedroom hotel is the chain's largest in the UK and Russells biggest hotel scheme to date.