The nine-storey hotel project will employ close to 200 people during its construction and create further jobs as part of its on-going operation.

It will replace the former Grosvenor Casino on Queen’s Road just outside Brighton railway station. Work on-site will continue until June 2013.

Martin Magee, construction director, for McAleer & Rushe said: “The new hotel not only will create a considerable number of new jobs during its construction and operation, but will also help meet the strong demand for more hotel rooms in the city.”

Thomas Dubaere, managing director, Accor UK & Ireland, said: “It is an important destination for the Ibis network of hotels and continues Accor’s strategic and ambitious expansion in the UK to increase our presence to 300 hotels by 2015.”