Intercontinental Hotels is to open a third property in London as part of a £121 million regeneration scheme on the Greenwich peninsula.
The 452-room property, which will be known as the Intercontinental London The O2, will stand at 19 storeys high. It is due to open in summer 2015.
The five-star hotel will feature 4,800 sqm of event space and Europe's largest pillar-free ballroom.
Leisure facilities will include a health spa, several restaurants and a panoramic Sky Bar with views of Canary Wharf and the River Thames.
The property, which is being built on land reclaimed from previously polluted soil, will be operated by Arora Hotels.
It will have the latest sustainable features such as "green" roofs and surroundings that will harvest water to reduce demand on the mains supply.
The development will also include the 23-storey Peninsula Tower, offering 100 serviced apartments.
Robert Shepherd, chief development officer for IHG Europe, said: "We're delighted to be breaking ground today on another Intercontinental hotel for London.
"We look forward to Intercontinental London The O2 sharing in the future success of its sister hotels, including the recently opened Intercontinental London Westminster and Intercontinental Marseilles Hotel Dieu.
"The recent sale of the Intercontinental London Park Lane and the soon to be open Intercontinental Davos Resort and Spa is a testament to the brand’s growth globally and its attractiveness as an icon of luxury."
Mayor of London Boris Johnson said: "I warmly welcome the proposal to bring this prestigious development to London. The project demonstrates great confidence in the city and will be a significant addition to the legacy East London is seeing following the London 2012 Olympic and Paralympic Games."
Last month, IHG opened the Intercontinental Osaka in the centre of Japan's latest commercial development, Grand Front Osaka (see online news, June 13).