Hyatt will open its first Andaz property in Germany in 2017.
The 274-room Andaz Munich will be located in the city's central Schwabinger Tor district.
It will be part of a mixed use site that will also include residential apartments, shops, offices and restaurants.
Of the hotel's 274 guestrooms, 36 will be junior suites, three will be executive suites and one a presidential suite.
The property will also feature an all-day restaurant, a lounge, a rooftop bar, a fitness centre with a spa and swimming pool, a ballroom, seven conference rooms and pre-function space.
Andaz Munich will be the brand's third hotel in Europe, joining properties in London and Amsterdam.
Hyatt senior vice president Peter Norman said: "We are eager to expand the Andaz brand presence in Europe, and especially in Germany.
"We continue to see a positive response from our Andaz guests in Europe – at Andaz Liverpool Street London and Andaz Amsterdam Prinsengracht – and we believe Andaz Munich will continue to bring excitement to Europe's travellers."
Hyatt is scheduled to open a property in Tokyo this year (see news, December 2012).