Hilton Worldwide is to open its first hotel in the Baltic States in 2016.
The 202-room Hilton Tallinn will be located a few minutes' walk from the historic old town and major commercial areas of the Estonian capital.
The new-build will have facilities including a business centre, gym, spa, indoor swimming pool, outdoor sun terrace, an all-day dining restaurant, private dining room and lobby bar.
Patrick Fitzgibbon, Hilton Worldwide's senior vice president, development, Europe & Africa, said: "With Hilton Worldwides heritage in Europe stretching almost 60 years, we are delighted to announce our expansion into the Baltic region.
"Hilton Tallinn is a high quality project and a superb example of our core Hilton brand expanding in capital cities and popular destinations across the region."
The announcement follows Hilton Worldwide signing a management agreement with project owner Fortuna Travel OÜ.
The medieval old town of Tallinn was granted UNESCO World Heritage Site status in 1997. In recent years the city has benefited from new airline routes to Tallinn Airport from major cities such as London, Frankfurt, Moscow and Scandinavian countries.
Hilton Worldwide has more than 250 hotels operating in Europe and a further 130 now under development.
The company last month announced the opening of its 4,000th property, the Hilton Shijiazhuang in the Hebei province of China (see online news, June 28).