Hilton says that it will create more than 500 jobs when it opens two new hotels in SE1 in 2012 and 2013.
The 278-room Hampton by Hilton London Waterloo will be Hampton's first property in central London and one of the brand's biggest hotels outside the USA.
Planning permission for the new hotel on the site of Partnership House in Waterloo Road was granted in 2009 but the scheme's Irish developers collapsed and the land was in the hands of Ireland's National Asset Management Agency.
The new hotel is now scheduled to open in 2013 and will be operated under franchise by Shiva Hotels.
The hotel, owned by The Splendid Hotel Group and managed by Hilton Worldwide, will offer 281 guest rooms (including 31 suites), an executive lounge, a fitness centre including a swimming pool, more than 1,030 square metres of meeting space, plus a bar, coffee shop and restaurant.
"London is one of our most successful global destinations and, as we continue to build our presence in the capital, are delighted to be adding what will be two superb hotels to the city's offering," says Patrick Fitzgibbon, senior vice president development Europe & Africa at Hilton Worldwide.