The hotel is due to open towards the end of 2019.
Each Indigo hotel is inspired by its local neighbourhood.
Hotel Indigo Chester will feature rooms based around Chester’s historic architecture, racecourse and famous clock tower.
The restaurant at Hotel Indigo Chester will be operated by MasterChef Champion Simon Wood who will open his second restaurant - Wood Chester - in the hotel.
Other facilities include a residents-only fitness facility.
Hotel Indigo Chester will be located alongside St Werburgh’s Church in Grosvenor Park Road in Chester.
Other new hotel developments in Chester include a new easyHotel with 109 bedrooms which is planned in nearby Forest Street.