The scheme – which is set in a 4.5-acre site – will include two new hotels – one six-storey and one 10-storey – 35,000 sq ft of office space and a new public realm area.

The construction and infrastructure company will carry out the work alongside the regeneration of the former Leicester Central train station and also deliver a new car park for the hotels and office.

The majority of construction will be undertaken during the night to minimise the disruption to motorists in the area.

“Leicester is riding a wave of optimism and prosperity on the back of a resurgent tourist industry,” said Sean Bowles, managing director at Morgan Sindall in the Midlands.

“We worked closely with the city council to successfully deliver the Richard III visitor centre, which has helped maximise interest in the historic find.

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“We’re incredibly pleased to be working with them to deliver both this landmark scheme and the programme of important infrastructure upgrades.

“It will breathe new life into the Great Central station area and substantially improve the accommodation offer for visitors to the city.”

Peter Soulsby, Leicester city mayor, added: “The connecting Leicester work taking place across the city has been vital in reconnecting important areas of the city, and the work on Vaughan Way is the next stage of that.

“The city’s waterside area will be key in the next stage of creating business and office space, housing other community facilities, and needs to be better connected to the rest of the city centre.

“Vaughan Way is possibly the busiest part of the city’s inner ring road, providing access to many parts of the city, including Highcross, the A50 and A6 arterial roads out of the city, St Margaret’s bus station, St Nicholas Circle and the Southgates underpass.”