Mayor of Liverpool Joe Anderson visited the building to mark the start of the 15-month scheme.
The Grade II* listed building has been empty for 20 years and was on the National Buildings at Risk Register.
Developer Ashall Property is reviving the building on behalf of Starwood Hotels & Resorts.
Liverpool City Council bought the freehold for 拢1.95m earlier this year to enable the project to go ahead.
Balfour Beatty regional managing director Jon Adams said 鈥淏alfour Beatty is delighted to be involved in the transformation of one of Liverpool鈥檚 most iconic buildings and look forward to delivering a project that will exceed the expectations of our customer and future guests using the hotel.鈥�
It is estimated that 150 construction jobs will be created during the build.
Pictured below, left to right, are Balfour Beatty鈥檚 Jon Adams, 聽MayorJoe Anderson, Ashall Property director Mark Ashall, 聽Starwood Hotels area manager Colin Bennett and Balfour Beatty operations director Mark Pearson.
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