According to reports, approval for the redevelopment of the site was granted despite a number of objections, including from the Greater London Authority and English Heritage.
Edwardian Group London chief executive Jasminder Singh said it was "great news" for the West End and paved the way for "redevelopment of an iconic London destination".
Deputy leader of Westminster city council Robert Davis said: “This will bring a renewed vibrancy to one of London’s most exciting areas and provide a new focal point for Leicester Square itself. I think it will be a superb addition to the spiritual home of British entertainment and cinema.”
The ten-storey hotel will have 360 bedrooms, a spa and a two-screen cinema.
