Moinian Group is building the hotel on a parking lot, located at 514 West 168th Street, between Amsterdam and Audubon Avenues.
The 54-room hotel will cater to the medical community and accommodate families of patients in hospitals on the nearby New York Presbyterian campus.
A permanent name has been chosen for the property, tentatively called The Audubon.
The developer is in currently in negotiation with a major chain to operate the hotel at a three-star level, comparable to a Courtyard by Marriott.
The hotel will be only the second hotel to be built north of 110th Street and is expected to be completed in late 2014 or early 2015.
Moinian Group expects the project to create 50 construction jobs and 25 permanent jobs.