The company, a joint venture between Deanway Development and JW Muir Group, will start work on the project at the former Perth and Kinross Council office building in the city's Mill Street immediately after receiving £3m of funding from Santander Corporate & Commercial.
The hotel space, which includes 3,000 sqft of retail space has already been let to Premier Inn as part of Whitbread's plans to expand the budget hotel brand north of the border.
John Muir, founder and group chairman of the JW Muir Group, said its city centre location would be a popular one with tourists visiting the city.
“This latest development is a great addition to our portfolio, and we are delighted to be on site and already working on the project. We believe it will benefit from its great location in one of Scotland’s great cities, with strong potential to benefit from tourists as well as retail traffic," he said.
The JW Muir Group, which celebrated its 40th anniversary in 2013, is one of the largest privately owned property companies in Scotland. The group, which employs over 350 staff, has a current property value of approximately £30m. It's partner in the project, Deanway Development is an Edinburgh-based property company set up in 1997 which focuses on retail, office, industrial, residential and mixed use developments.
Under the Deanway Muir joint venture, the two businesses have worked on a number of previous projects in Scotland, including a retail development in Livingston.
Nick Peet of Santander Corporate & Commercial, said: “Deanway Muir is run by two of Scotland’s leading and most respected property development companies, and its successful track record speaks for itself. We’re confident that the business will maximise opportunities for the hotel and retail development in Perth, and look forward to working with the management team in delivering a successful outcome for all stakeholders.”