Developer Havard Tisdale is turning the former Terrace Mount car park into two hotels, a leisure club and luxury apartments.
The job is now out to tender following granting of full planning permission and firms have until August 9 to register their interest.
Construction information specialist Glenigan said firms already in the race include Kier Southern, Galliford Try, Sir Robert McAlpine, Mcaleer & Rushe and John Sisk.
Work is due to start before the end of this year.
The main four or five star hotel will contain 167 bedrooms, 59 apartments, a skybar, a leisure club, swimming pool, conferencing facilities and a café. The second 3 star hotel will consist of 114 bedrooms.
Havard Tisdale is currently involved in another regeneration scheme in Torquay, which includes an 80 bedroom hotel, a multi-screen digital cinema, new restaurants and retail units, together with luxury apartments.