The 200-bed, 4 star equivalent hotel will be built on its main University Park campus, next to the East Midlands Conference Centre.
It will feature at least 50 executive-style rooms, four boardrooms and a gym as well as a restaurant and bar which will be open to conference delegates and the public.
The eco-friendly hotel has been designed to the BREAM Excellent standard and is the brainchild of the University to provide a fresh income stream.