The contractor will build a 150-bedroom Etap budget hotel and a speculative five-storey, 20,000 sq ft office block. Completion is scheduled for the end of 2012.
Client for the scheme, which is on the junction of Pollard Street and Great Ancoats Street in the city, is Royal London Asset Management.
A further 50,000 sq ft of commercial space is planned in a second phase.
Project manager is CRE8 and the consulting engineer is Shepherd Gilmour.