Swedish property investor and developer AMF Fastigheter has awarded a SEK600m ($72m) contract to NCC to build two new Choice hotels in Stockholm.
The 540-room hotels will sit in existing properties of the Gallerian shopping mall.
As part of the contract, Swedbank’s former office premises at Brunkebergstorg and above the Gallerian mall will be transformed into hotels.
Two storeys will also be added to the property, which would be operated by Choice Hotels.
To be implemented on a partnering basis, the latest project is said to be part of the Swedish firm’s city conversion initiative called Urban Escape Stockholm.
AMF Real Estates CEO Mats Hederos said: "Our goal is to create two hotels and a restaurant concept that is tailored just for Urban Escape Stockholm and Brunkebergstorg.
"In this project, in addition to the hotel concept, we will develop creative office environments, restaurants, plazas and roof areas, everything in harmony."
Construction is expected to commence in March at the heart of central Stockholm causing minimal disruptions to the surroundings.
NCC has said that the project will be environmentally certified according to LEED Gold.
NCC Construction Sweden business area manager Svante Hagman said: "Following refurbishment, the office properties from the 1970s will be transformed into state-of-the-art hotels with significantly higher environmental performance than today."
The two new Choice hotels are slated for opening during early in 2017.