The 230-bedroom hotel will open on 16 March at the site of the former Holiday Inn on Bath Road, after the group agreed a 25-year lease with The Standard Life Investments Pooled Pension Property Fund.
In addition to the bedrooms, the hotel will have 11 fully-equipped meeting rooms, a gym, a cocktail lounge with a sundeck and a restaurant serving a menu of British food. It will operate a shuttle service to and from the airport.
Leonardo Hotels said the Heathrow property is just the beginning of its UK expansion, which is being led by the group’s UK chief executive Saar Sharon.
Daniel Roger, managing director of Leonardo Hotels Europe, said: "We are pleased to announce that with this exciting hotel opening we are now poised for growth in the UK market.
“London Heathrow is a global hub where we can offer our guests an attractive hotel stay, build our UK business and continue to pursue our rigorous commitment to offer additional European destinations."
Leonardo Hotels was launched by the Fattal Hotels Group in 2007 and now operates more than 85 hotels in Israel, Germany, Austria, Switzerland, Belgium and Hungary.
Each Leonardo hotel has an individual design, which is defined by regional character and the incorporation of special local features.
Stewart, fund manager of the Standard Life Investments Pooled Pension Property Fund, said: "We're delighted to have completed the deal with Leonardo Hotels, which is fast becoming a key player in the European hotels market. Bath Road is a prime asset for the fund and securing a new lease with such a strong covenant is a significant achievement."