Groundbreaking for the Hilton Garden Inn Downtown Minneapolis and Convention Center is 11 a.m. on Wednesday.
The 10-story hotel is scheduled to open in early 2009.
Mark Globus, managing director of Global One Commercial, said the hotel will have 210 guest rooms and one level of underground parking.
Minneapolis-based Global One Commercial is developing the project with First Hospitality Group of Rosemont, Ill. First Hospitality Group will manage the hotel.
The site, wedged between the Interstate 35W entrance and exit ramps, is the former location of a Minnesota Department of Transportation traffic control center. That building was demolished.