The Nottingham-based company is about to start work on the seven-storey Ibis hotel.
The 126-bedroomed hotel will be beside Velocity Tower on an existing podium that was originally planned for the tower's second phase.
J Tomlinson CEO Mark Davis said: "For some time, J Tomlinson has been increasing work throughout its divisions in the Yorkshire area and we are delighted to have been appointed to build the new Ibis hotel in Sheffield, which will complete the Velocity Tower development."
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The hotel, designed by Whittam Cox Architects on behalf of Harridge Developments Limited, will also feature a coffee shop on the ground floor along with the reception, as well as 14 parking spaces. It is expected to be open in December 2019.
Whittam Cox Architects Associate Director Nick Fenton, who is working on the scheme, said: "We're delighted to be working with J Tomlinson to complete this prominent scheme in the heart of the city. Our proposals will enable the completion of the original scheme's aspiration and create a high quality leisure focussed extension in Sheffield city centre."
