The Holliday Street venue was one of Europe's first Japanese-style 'pod' hotels when it launched in 2006 but the 104-bedroom property was put up for sale in August 2011 after its parent company - Nitenite Holdings - entered administration.
Mattu, who owns a number of hotels and commercial properties across the UK, including the Holiday Inn Express in Yardley, took over the hotel in March saving 20 local jobs. He is now planning to create more roles following a multi-million pound refurb which will include a transformation of the hotel's reception and lobby areas.
"I am delighted to be adding the Nitenite Hotel to my portfolio of hotels and taking on the Nitenite brand, which has a strong customer base and unique position in the market place," said Mattu this week.
"Although it has been in administration, the hotel has continued to trade successfully over the last 18 months."
The budget hotel features more than 100 windowless, en-suite rooms. Although the venue entered administration, Mattu said he believed hotel guests were now increasingly interested in its compact bedrooms.
“Working in the hotel industry for a number of years, I have seen a real shift in the market from full-service hotels to limited-service hotels and more ‘pod-style' rooms.
"Nitenite was ahead of its time, being one of the first ‘micro boutique-style' hotels in Europe when it first opened in 2006, offering affordable luxury with all the hotel room amenities required within a compact space.
“When I saw that Nitenite was on the market I knew it was a great opportunity to grow the brand and concept and expand into similar cosmopolitan cities across the UK and Europe."
The hotel is within walking distance of the city's New Street train station and is close to Birmingham city centre, the local airport, the International Convention Centre (ICC) and the National Indoor Arena (NIA).
"Nitenite is ideally situated for the corporate and weekend leisure market, with all local amenities within a short walking distance. Weekend guests have told us it’s cheaper to stay at the hotel then get a taxi home after a night out,” Mattu added.
“Being from Birmingham, I am passionate about the city and what it has to offer and am excited at the prospect of taking a brand that was originally born in the city out to an international market," he said.