The contract was awarded by real estate company Ask:PATRIZIA to construct the 344 bedroom, 180,898 sq ft, dual branded hotel.
Planning permission for the project was approved by Gateshead Council in March and construction is set to commence later this year. The design was created by AHR Architects.
Other features of the hotel include, restaurants, bars, business meeting rooms and a residents' gym. They will be managed by Vine Hotels.
A network of pedestrian footpaths and crossings will link the hotel to the wider Quayside development areas and to Gateshead town centre to the west.
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When complete the hotel will be managed by Accor under its Novotel and Ibis brands. It is expected to host 210,000 visitors a year as well as to generate £13 million for the local economy.
Commenting on the project, Russel WBHO Managing director Gareth Russell said: "As a recognised specialist in hotel construction, we are extremely pleased to confirm our appointment to this new project in Gateshead.
"We take a collaborative partnership approach to delivery and our team is working closely with the client and the local authority in readiness for a project start later this year.
"As part of our commitment to responsible sourcing and social value, we will look to secure labour and materials from local suppliers wherever possible and ensure the project provides training and apprenticeship opportunities for local young people."
Reflecting on the new partnership, John Hughes, managing director of Ask Real Estate on behalf of the Ask:PATRIZIA partnership said: "Russell WBHO has a proven track record in the leisure sector and we are delighted to be partnering with them to deliver this superb new hotel for Gateshead. We're looking forward to making a swift start on site and seeing the creation of another valuable asset for the Quayside area."
