The Hilton Leeds Arena hotel is being developed by GB and built by its construction arm,
Completion of the 206-bedroom, 14-storey hotel is set for autumn 2015.
The site is directly next to Leeds Metropolitan University's Rose Bowl conference facility and 300m from the new Leeds Arena.
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.
At an official ground breaking ceremony this week, GB Group executive chairman Martin Smout said: "We are extremely proud of the fact that this is the only new upscale hotel development north of the M25 in the last five years, and would like to thank everyone who has helped us pull together this deal, during the recession, to make this new hotel project a reality.”
Got a story? Email news@theconstructionindex.co.uk