Marina developer MDL plans to build the 76-room hotel at the Ocean Village Marina site on the city’s waterfront.
Tenders for the construction are due within the next few weeks, with building work expected to start in the early Autumn.
Managing director of MDL Marinas Group, Eamonn Feeney, said: “We’re delighted with today’s decision which will enable us to deliver the final stage of the master plan for Ocean Village Marina.
“Most importantly, it will create a vibrant waterfront destination for the city.”
Stage two of the development will deliver the additional housing as well as a variety of shops, restaurants and offices.