The five-storey Premier Inn will contain 125 guestrooms, a restaurant, bar and meetings rooms and is designed by architects Faulkner Brown.

GB Group is also developer on the project and the firm has been working in partnership with Sunderland City Council and the University of Sunderland.

Brandon Riley, hotels director at GB Group, said: “This is an exciting new hotel development and another great example of GB Group’s developer contractor capability in the hotels sector.

“As a group we provide end to end solutions and we are now in a position to move forward into construction in Sunderland.

“Working together with the University, the City Council, Premier Inn and our funding partners this exciting new development has now become a reality.

“However, it’s much more than just a new hotel; it’s a fantastic example of how the public and private sector can work together in partnership to achieve a common goal.”

Phil Marsh, Director of Estates and Facilities at the University of Sunderland, said, “The University continues to be hugely supportive of this partnership development which will see further private sector investment made into the city centre, creating jobs and supporting growth.

“The hotel will provide further scope for growth in the University’s events and conference business, UniSpace, and is a welcome addition to Sunderland’s leisure and business tourism offer.

“The physical design and landscaping will continue the improvements made in the connectivity between the city campus and city centre and builds on the investment made by the University over the past eight years.”

Sunderland City Council Cabinet Secretary, Councillor Mel Speding said: “It’s great to hear that work is about to start on the site.  This has been a real partnership project between the university and council, as owners of the land and buildings, and GB Group, the developer.

“As well as seeing a new use for the site and the buildings, we’re getting more bedroom space for visitors who need and want to be next to the city centre and the university for their business or leisure.”

The project is due for completion by February 2015.