The redevelopment of Birmingham's historic Grand building will be completed with a new 180-bedroom hotel and roof-top pool.
Owner Hortons' Estate has agreed a conditional partnership with Principal Hotel Company which specialises in opening hotels in landmark city centre buildings.
The hotel at The Grand is Principal's first investment in Birmingham and will also contain conferencing and banqueting space, including the historic Grosvenor Suite, a restaurant and bar, a spa and the city's first rooftop infinity pool.
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It is scheduled to open in early 2019.
Hortons' Estate has been carrying out a long-running, £25 million regeneration of the Grade II* building in Colmore Row which has already restaurant Gusto, and and new offices.
Last week, from the Royal Institution of Chartered Surveyors.
Tony Green, chief executive of Hortons' Estate, said: "We have always believed that the restoration of The Grand would not be complete if it did not include a luxury hotel.
"After considerable time and effort, we have chosen to work with Principal on the project because they share our commitment to creating the city's finest hotel and because of their impressive track record working on similar buildings in other major cities."
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The Grand was developed by the Horton Family between 1879 and 1895 and contained shops, offices and the Grand Hotel which the family ran until 1969.
The hotel was subsequently managed by a number of operators until it closed in 2002.
Principal owns and operates hotels in Manchester, Edinburgh, York and London and is part of a wider group owned by US investment firm Starwood Capital which also includes the De Vere brand.
Principal is currently undertaking a £250 million investment programme and is due to launch other new hotels in Glasgow, Cardiff, Liverpool, Leeds and Oxford over the coming year.
Cody Bradshaw, head of European hotels at Starwood Capital, said: "The Grand is a magnificent building in a great location. I have no doubt it can once again become the best hotel in the city."