The new Lincoln Premier Inn will open on Valentine's Day.
The Broadgate hotel has 131 rooms, with each catering for up to two adults and two children.
The £6.5m development is being built on the site of the former Save petrol station and O'Rourkes pub.
Whitbread PLC, which owns the Premier Inn brand, says the new property will contribute more than £1 million to the local economy and create 30 new jobs.
Mark Gabb, general manager of Premier Inn Lincoln, said: "The hotel is ideal for those looking for great value while staying in the heart of Lincoln."
The Premier Inn will be one of more than 600 across the country.