Developer Capital & Centric said it has secured funding for the project through the Greater Manchester Pension Fund.
Works on the 14-floor tower are due to begin in the summer, subject to coronavirus restrictions being lifted.
The 10,300m² hotel, situated on Adair Street in Manchester’s Piccadilly East district, will have 275 bedrooms.
The development will be the first to come through Manchester City Council’s Portugal Street East Strategic Regeneration Framework, which was established in 2017 in anticipation of developments surrounding the HS2 Manchester Piccadilly station – the link between HS2 and Northern Powerhouse Rail.
Capital & Centric Co-founder Tim Heatley said: “In these difficult times, it’s even more important to be pushing ahead with our Adair Street hotel. Manchester will bounce back and these deals are a positive reminder of how resilient our city region is.”
The hotel is set to be completed by early 2022.
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