Skanska has signed a €47m (£41m) contract with Ylva for the renovation project.
The resulting hotel will be part of the Hyatt group, and is its first in the Nordics.
The project will combine three separate buildings into a hotel that will have 224 rooms and restaurant spaces, with a total areas of about 21,000m2. The historic buildings are located in the heart of the city, and the oldest one was built in 1910.
The renovation will start next month and is scheduled for completion in the second quarter of 2023. The project is expected to receive LEED certification.