Building work will restart by the end of next month on the 120-bedroom Harbour View Hotel which the council will be leasing to Premier Inn.
Construction stopped in January when Midas went into administration owing £22m to its supply chain.
Morgan Sindall has been appointed under the Scape Framework and regular meetings are now taking place between the council and Morgan Sindall to finalise the delivery timeline, including the revised completion date.
Cllr Swithin Long, Cabinet Member for Economic Regeneration, Housing and Tourism for Torbay Council, said: “Midas’ administration has created difficulty for local businesses and their employees as well as the council.
“Following that failure, the appointment of Morgan Sindall is great news for this project. Whilst there are still details to work through in terms of the delivery and time costs, we remain absolutely committed to this project.
“Upon completion, Harbour View hotel will complement existing hotel accommodation and our wider Torquay harbourside regeneration works, supporting the renewed ambition for Torquay and Torbay as a premier UK resort.”