The project was officially launched yesterday by Tourism Minister Damien O'Connor, Hilton Hotels Australasia vice-president Ashley Spencer and Tourism Dunedin chief executive Jan Hindson.
The building is being developed by the McEwan Group, and director Kelly McEwan said yesterday the company was looking at starting the project in about six months.
He said the company was moving as fast as possible but design work was long and detailed.
Construction would take 12 to 14 months.
The top three floors of the project would be apartments and most of them had been sold off the plans. It was planned to open in mid-2010.
Local contractors would be employed for the bulk of the work. He declined to put a cost on the project.
Mr Spencer said about 120 people would be employed by the new Hilton Hotel, the second of its kind in New Zealand, with the other hotel in Auckland.
Hilton staff were won over by the beauty of the building and, knowing it was a safe and sound building, the company had signed a 10-year agreement to manage the hotel. He hoped the hotel would open in about 18 months.
The company wanted to build a circuit of hotels around New Zealand, and was looking hard at other options.
Mr O'Connor said Dunedin had much happening on the ground, and would attract those people who did not want something like the Gold Coast.
