THE $30 million seven-storey hotel to be built next to the Australian Taxation Office headquarters in Albury will be part of the Novotel chain.
An official announcement of work starting on the 4.5 star hotel in Smollett Street early next year is due to be made next week.
The hotel, which will be managed by the Accor Hotel Group, could create 200 jobs in the construction phase.
It is expected to be completed in mid-2015 and will create further jobs in the accommodation sector.
The hotel will have 120 rooms and conference facilities.
Novotel Albury will join a network of nearly 400 hotels in 60 countries.
Plans for a hotel as part of the $53 million Volt Lane redevelopment were revealed in The Border Mail in June last year.
The hotel will partly straddle the Smollett Street ramp to the public car park which was the first part of the Volt Lane area constructed and opened two years ago.
An Accor Group spokesperson confirmed yesterday an official announcement of Novotel Albury was imminent.
Novotel has flagship accommodation in Darling Harbour and the Twin Waters Resort on the Sunshine Coast.
Confirmation of a start on the Volt Lane hotel is the latest major accommodation development on the border in a few years.
Quest Apartments opened in Wodonga in August as part of a $25 million joint development with the Huon Hill pub.
More Quest apartments are being built in the former tax office building in Smollett Street.
Quest opened its first apartments in Albury in Kiewa Street five years ago in a $17 million development.
The freehold of that property was bought by a syndicate of local investors this year for nearly $25 million.
The Volt Lane Markets retail area under the car park is also expected to begin next year.