The mid-market property will be built on the former Lexington Avenue nightclub site in Ferensway in time for Hull becoming the City of Culture in 2017.
Plans were submitted by Hull development company Lexington Avenue Leisure and work is expected to start in the coming months with completion by the end of 2016.
Councillor Martin Mancey, portfolio holder for Energy City said: "A Hilton hotel will be a valuable asset to the growing band of proposed hotel developments across the city and support the ongoing capital investment programme in the city centre. Welcoming brands which offer a global reach is a win-win situation for the city's tourism industry and economy."
The plans include a restaurant, gym and conference rooms and it is hoped the project will create around 200 jobs.
Cllr Mancey added: "Boosting our local economy is a priority for the council and a Hilton hotel will complement the qualities and character of Hull while supporting the city's multi-million pound investment and regeneration programme.
"The building will create a landmark on Ferensway and revamp the area which has been left unoccupied for a number of years."
A spokesperson for Hilton Worldwide said: "Hilton Worldwide is in an exciting phase of growth and we are looking at many locations around the UK to introduce various brands from our portfolio. Hull is a destination which has attracted our interest and we are reviewing a number of sites in the city, though nothing has been confirmed at this early stage"
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