The hospitality arm of the group of companies, which also operates the boutique hotel Bray House in the UK and a number of luxury resorts around the world, has received a loan from RBS to support the acquisition and redevelopment of the three buildings into a 99-bed luxury hotel.
YTL also owns Wessex Water, the regional water and sewage treatment business in the South West, and the Gainsborough Hotel & Spa will have direct access to the city's famous natural hot springs through the relationship with the water company.
Dato' Mark Yeoh Seok Kah, executive director of YTL Hotels, said the company was very pleased to have secured the new funding from RBS in order to be able to push ahead with its plans.
"We are now looking to progress the conversion of this historic building into a high quality, hotel & spa, that will capitalise on one of the city’s most unique attractions – the naturally occurring thermal spring waters – that have attracted tourists and visitors to the city for generations," he said.
The hotel will be located near to the Thermae Bath Spa and will encompass three buildings - the Grade II listed Gainsborough Building on Hot Bath Street, Bellotts Hospital and Abbey Church House.
Plans for the site have been in the pipeline for a number of years but with funding secured it is expected YTL Hotels will begin work on the hotel this year.
The 4-storey hotel will contain a number of wings around a central courtyard, the base of which at basement level will be the spa covered by a glazed roof. There is also expected to be conference facilities on site.
A spokesperson for YTL Hotels confirmed to BigHospitality that the group was also looking for further hotel developments in the UK.