Construction has just on the £25m project in the Castle Gateway district with the hotel due for completion in the first quarter of 2021.
Avantis Hotels, which already owns and operates the Hampton by Hilton York in nearby Toft Green is developing the Piccadilly site, which most recently housed offices, a carpark and a motorcycle accessory shop.
In addition to its 143 guest bedrooms, the hotel site will also include eight luxury private flats.
The scheme is designed to the latest BREEAM standards and will boast cycle parking bays and a number of electric-vehicle charging points.
GMI Divisional Managing Director Lee Powell said: “This project is the second major hotel development that GMI have been entrusted to deliver this year following the completion and handover of the 137-bedroom luxury Dakota Hotel development in Manchester in June.
Once completed this new hotel will be the 11th hotel project delivered to date by GMI in prime city centre locations across the Midlands and North.