Construction group BAM will lead the £35 million regeneration of Studley Castle hotel in Warwickshire.
The Grade II*-listed country house was acquired by Warner Leisure Hotels last year since when it has closed to undergo a major programme of renovation work.
It will refurbish and restore what will become the 14th hotel in Bourne Leisure group under the Warner brand.
The group acquired the country house and also owns holiday parks Butlin's and Haven.
Studley Castle near Redditch was built in the 1830s and will have 210 bedrooms, a swimming pool and spa when it reopens.
A new bedroom block and cabaret space extension to the existing stable block will link to the main building.
Jon Kiteley, BAM's construction manager, said: "Our team has been working closely with Bourne Leisure and its consultants to develop the design and construction strategy to deliver this landmark project.
"We now have the opportunity to deliver the redevelopment which will see the rejuvenation of this important local landmark, allowing its story to continue towards, and beyond, its 200th anniversary."
Studley Castle will reopen in winter 2018.