Harrogate-based property business Yorkshire Ventures intends to transform an office block in the centre of York into a 124-bedroom Malmaison hotel.
If granted planning permission, the Yorkshire House building on Rougier Street, which once housed the Aviva insurance company, will be converted into a venture that will incorporate 49 serviced apartments alongside the Malmaison hotel.
Richard Jackson, chairman of Yorkshire Ventures, said there was demand for more accommodation in what is one of the UK's most popular tourist cities.
"The addition of the prestigious Malmaison boutique hotel brand will only help to enhance York's offer in this department, attracting more visitors to stay in the city centre," he said.
"The proposals will deliver a significant boost to the city's economy and could create between 80 and 90 new employment opportunities once the hotel is operational. Significantly, the plans will also breathe new life into an important gateway site into the city centre."
Steve Brown, managing director of Make It York, added: "There has been massive investment in hotel stock in York in recent months and the addition of the Malmaison is another encouraging and positive development. It is a great brand to be bringing to the city and further improves the quality of accommodation that York can offer."