The site has an existing hotel planning consent from Edinburgh City Council and new owner Queensgate plans to operate the 228 room hotel under the Hampton by Hilton banner.
The hotel is scheduled to open in summer 2017 and forms part of Grosvenor’s Springside mixed-use development which is well-located for the central business district, Edinburgh International Conference Centre and a host of famous landmarks.
Robin Blacklock, planning and development director Scotland for Grosvenor Britain & Ireland, said: “This marks another milestone in the transformation of Fountainbridge.
“The hotel will benefit from close proximity to all of the amenities of the central city and will bring further jobs and vibrancy to the area.”
Grosvenor was recently granted planning consent by Edinburgh City Council for up to 400 new homes adjacent to the hotel site in Fountainbridge.