Belfast City Council has approved plans for an £8m hotel called The Waring in the Cathedral Quarter by the end of 2017.
Business partners Andre Graham and Seamus Sweeney bought the the former War Memorial Building in Waring Street for £1.2m last year, having sold Belfast gay venues The Kremlin, Union Street and Shoe Factory for £3m in 2014.
The new four-star hotel will offer 63-beds over five floors and create upwards of 60 full-time jobs.
The Waring will be aimed at the younger end of the professional demographic as well as weekend travellers.