Crystalbrook Collection, an Australian hotel group backed by Syrian billionaire Ghassan Aboud, will operate the 238-room hotel when it opens in 2027.

A rooftop bar, high-end restaurants and a glass-bottom swimming pool suspended above a central atrium are among the luxury features.

The ambitious three-year timeframe to build the 10-storey Garema Place hotel will begin this week.

Local group TP Dynamics is developing the hotel, after the firm paid about $30 million to buy the development-approved site from Geocon in early 2023.

The deal between TP Dynamics and Crystalbrook Collection is estimated to be worth $200 million once the hotel is complete.

TP Dynamics founder and managing director Tony Pan said the partnership with Crystalbrook was a "natural alignment".

"Crystalbrook's ethos and values are consistent with our goals for central Canberra's revitalisation and together we are delighted to build a legacy for the city," he said.

The Canberra hotel will join the group's existing properties in Cairns - where the Crystalbrook brand launched in 2018 - Brisbane, Byron Bay, Newcastle and Sydney.

Crystalbrook's first Adelaide hotel is set to open in 2026.

Mr Aboud said his vision of a "truly national hotel group" was coming to fruition.

"This growth of our brand across Australia is delivering a strong base for a future expansion of Crystalbrook Collection into overseas markets," he said.

A ceremony will be held at the development site, between Bunda Street and Garema Place, on Thursday to mark the start of construction.

Businesses at Garema Arcade, including the historic Gus' Place cafe, closed down earlier this year to make way for the development.

The cafe is heritage listed but the status refers to its "intangible heritage" rather than the physical building itself.

Mr Pan told The Canberra Times in February he wanted to see Gus' return to the hotel.

"We want to keep them, we just haven't had the discussion yet," Mr Pan said.

The Garema Place hotel will also include a luxury retail shop, a day spa, a ballroom for events and three levels of basement car parking.

Also a natural fit for Canberra is the hotel brand's focus on sustainability.

Crystalbrook has a ban on single-use plastics that means no plastic straws, water bottles or single use bathroom amenity bottles in sight.

Guests can also expect recycled cardboard coat hangers, wooden room key cards, waste-free coffee pods and biodegradable bathroom amenities.

The high-end hotel plans tie in with the ACT government's efforts to revitalise Garema Place.

In March 2023, the City Renewal Authority proposed a series of upgrades to improve safety and accessibility in the area.