The £14m scheme provide a hotel, several apartments and restaurant space in Lichfield got the go-ahead from local planners a few weeks ago.
Harrison said it is now in advanced negotiations with a major national hotel chain to build a new 65 bed hotel on the Friary Outer site.
As part of Lichfield District Council’s parking strategy for the city, the site, which spans just less than two acres, will feature a new car park, increasing parking from 230 spaces to around 400 spaces.
Enabling work on site, including archaeological exploration, got under way a few weeks ago after the car park and housing element of the scheme was approved.