The Greater Manchester Pension Fund will finance the construction of the city's luxury Jenga-style hotel.
Capital & Centric has completed an agreement with the fund to finance the build of its-275 bedroom hotel, while also confirming Bowmer & Kirkland as the main contractor.
The works to the Piccadilly East district development are expected to start in the summer, subject to coronavirus restrictions being lifted.
Tim Heatley, co-founder of Capital & Centric, said: “In these difficult times it’s even more important to be pushing ahead with our Adair Street hotel.
"It’s going to be a striking new addition to Manchester’s skyline and an anchor development in the Piccadilly East neighbourhood.
“With residents due to move into our [nearby] Crusader and Phoenix developments later this year and plans for other homes in the area this is going to be a thriving new part of the city.
"We’re also creating a new public square flanked by a cafe bar, providing some much needed outside space that anyone can enjoy.
“Yes, everyone’s been hit by the shock of Coronavirus, and we’ve recently set up our building opposite the Mackie Mayor as an emergency supplies depot.
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"Manchester will bounce back and these deals are a positive reminder of how resilient our city region is.”
The hotel on Adair Street will be acquired and occupied by the Fattal Group following completion - operating under its Leonardo Hotel brand.
The completed 4* hotel will create 90 full-time jobs, with the £35.5m project expected to be complete in early 2022.
The 110,000 sq ft hotel, located on the corner of Adair Street and Great Ancoats Street, will span 14 floors, with planters adorning the side of the Jenga-inspired building.
It will have a ground floor restaurant, bar and external terrace area that will spill out onto a new public square, which Capital & Centric will build for the council as part of the development.
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The hotel, designed by Stephenson Studio, has been praised for its ambitious and eye-catching design, having won the President’s Award at the Manchester Society of Architects awards.
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Gareth Conroy of Avison Young, property fund managers to the Greater Manchester Pension Fund, said: “Times are tough but it’s important that we look to the future and plan for when the crisis is over.
"This hotel is an ambitious, high-quality project which sets the bar high for development in the City."