The new hotel would be a part-five and a part-six storey building. It would be located at 46-50 Piccadilly.
The site is currently a 60-space car park with a retail unit fronting Piccadilly. That building would be demolished to make way for the new hotel.
The proposed hotel would have around 155 bedrooms, together with a residential block of eight two-bedroom and three-bedroom apartments.
The new hotel would feature views across the River Foss to York's landmark Clifford's Tower.
Planning consent had already been granted for a 140-bedroom hotel on the site. It would have been named Piccadilly Riverside.
The site is now being operated by Avantis Hotel Group. The group propose to operate the new hotel as a Hampton by Hilton property.