GB Building Solutions will start work this month on the £21m construction contract to create the 206-bedroom, 14-storey Hilton Leeds Arena hotel.
The site is directly next to Leeds Metropolitan University's Rose Bowl conference facility and 300m from the Leeds Arena. The new hotel has been designed by architect Dexter Moren Associates.
GB Group has secured £4.8m funding from the Leeds local enterprise partnership (LEP) in addition to private funding.
The GB Group will retain ownership of the hotel, which will be operated as a Hilton Hotels & Resorts property under a franchise agreement with Hilton Worldwide. Once open, it will be managed by hospitality specialist Redefine BDL.
This is GB’s second hotel development in partnership with Hilton Worldwide following the construction of Hilton Garden Inn Luton North in Bedfordshire.
GB Group chairman and CEO Martin Smout said: "This is a key development for us, and marks an important milestone in our evolution from a developer contractor into a property owner investor. We are thrilled to have secured the go-ahead and funding to deliver this ambitious scheme at the heart of one of the UK's most exciting cities, and look forward to working closely with our partners to build what will become the premier destination for business and leisure in Leeds."