Demolition work has begun on replacing the former police station in Bridge Street with a new Premier Inn hotel.
The 126 bed hotel received planning approval last September from Peterborough City Council’s planning committee.
Builders were seen on site late last week with demolition taking place.
The new hotel is expected to provide 37 new jobs.
A Premier Inn spokesman said: “The site is currently being cleared and then the main construction work will begin. We are expecting the hotel to be completed in summer 2020.”
It will soon be joined by a new Hilton Garden Inn hotel just a few minutes’ walk away at the major Fletton Quays development.
The Hilton hotel is due for completion in 2020.