A hotel, which will be opened at 2.5 acres of land in Bhathrak, will be built in the area to cater to guests of the Hyatt Hotels and Resorts Group.
The hotel will be based at the new hotel which will also have its own restaurant, said the managing director of the company, Rajiv Gupta.
The project is expected to be completed by the end of this year.
Gupta added that the hotel would be the largest hotel in the city.
The Hyatt Hotel and Resort Group had its maiden hotel in Delhi in October 2016, and the project was then approved for the construction of a new hotel.
It was given the go-ahead by the Delhi government in October 2017.
Guptas group had planned to build an 8-star hotel at its Bhathraks residence in the nearby Jamshedpur area, but it fell victim to protests against the project.
Hyatt has now decided to build its hotel in a different area in the Bhathrahks area, which was approved by the government for the project, Gupta said.
Hyad Hotels said that the Bhatrak project is the most ambitious hotel project ever in the history of the hotel industry.
The hotel is expected cost over ₹7,000 crore.