Intercontinental Hotels Group will open a Hotel Indigo property in Bath next year.
The 121-room Hotel Indigo Bath will be rebranded from two existing hotels, Halcyon and Pratt's, and a restaurant.
Llocated in the city centre in a Grade I-listed Georgian building on South Parade, it is scheduled to open "towards the end" of 2016.
Facilities will include a restaurant, bar and gym.
Anna Corkill, IHG's development director for the UK, said: "The boutique hotel market is the fastest growing segment in the industry and our pioneering Hotel Indigo brand is leading the field in Europe.
"We're thrilled to have found such a perfect site in Bath and we're looking forward to working with St James' Hotels Group to open a brand-defining Hotel Indigo property."
Hotel Indigo will operate under a franchise agreement with St James' Hotels Group.
IHG currently has seven hotels in Bath. There are eight Hotel Indigo properties in the UK with a further seven in development including a hotel in London's Barbican (see news, March 2014).