The nine storey building on Union Street will include studio and one bedroom apartments grouped around internal courtyards. It will incorporate a café bar on the ground floor with the apartment reception on the first floor. The project is due to be completed in Autumn 2016.

The new building will transform the site of a former music shop, which ceased trading several years ago.

Donald MacDonald, managing director, Ogilvie Construction, said: “We are delighted to be working with SACO to deliver a major project that will provide high quality accommodation in the centre of Aberdeen.

“Our teams have extensive experience in the hotel and leisure sector and the building will be constructed to the highest standard, providing first class accommodation in an excellent location.”

Stephen Hanton, CEO commercial, SACO, added: “Scotland is a key growth market for SACO and, as a major business destination as well as one visited by many tourists, opening a property in Aberdeen is a priority for us.”