The building is being given a new facia and a complete internal refit and will open in the summer of 2012.
Liverpool-based company Sanguine Hospitality will run the 285-bedroom hotel, which will become part of its fast growing portfolio of hotel and restaurant venues across the UK.
Nick Taplin, managing director of Sanguine Hospitality, said that the new Hampton by Hilton hotel was the second of three projects the company had planned for Birmingham.
Sanguine Hospitality, which is working to open a hotel in Birmingham’s Cube building, has also applied for planning permission to convert Kennedy Tower in the Snow Hill area of the city into a 224 hotel.