The 121-bedroom hotel is to be created from two existing hotels - the Halcyon and Pratt's hotel - and a restaurant within a Grade-I-listed Georgian property on South Parade, in the heart of the city. It will operate under a franchise agreement with St James's Hotel Group, a subsidiary of the Jersey-based real estate company Somerston Group.
The Halcyon was previously owned by the Halcyon Group, headed by property developer Giles Thompson, while Pratt's hotel was part of the portfolio of Forestdale hotel which St James's Hotel Group acquired in 2014.
Set to open in 2016, the Hotel Indigo Bath will join a portfolio of eight Indigo properties in the UK. A further seven are currently in the pipeline.
Its design will reflect the surrounding neighbourhood, while the restaurant and bar will tap into Indigo's new locally crafted food and beverage philosophy, launched earlier this year. The hotel will also offer a gym.
Shaun Robinson, managing director of St James's Hotels Group described Hotel Indigo and Bath as a perfect fit. "I am very excited to be bringing the brand to a place that enjoys a world-wide reputation as a 'must-see' city drawing guests from every continent, keen to experience the architecture, the culture and the history."
Launched in 2004, Hotel Indigo last year celebrated the opening of its 60th property worldwide with the launch of Hotel Indigo Paris Opera.