Demolition of the existing building began earlier this year, and construction of the 147-bed hotel is set to finish in spring 2010.
The exterior of the 11-storey building will be finished in a black brick.
Andrew Russell, managing director of Russells Construction, said: “We were up against some well known names for this contract and I was delighted to have won the tender.
“The hotel sector is an area of our portfolio we have been keen to develop. This will be our tallest, most high profile building to date and we have put together a highly skilled team in order to deliver the project.”
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