The developer's scheme is reportedly a 42-bedroom boutique style hotel, in the heart of the city, beside Derry's walls on Shipquay Place.
The complex is said to be one of a number planned for the historic city.
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Catherine O'Connor, speaking on behalf of Derry Visitor and Convention Bureau believes the additional hotels are a much-needed facility to meet the growing tourist demand.
Ms O'Connor told the BBC: "Visitors want to stay in the city centre because they want to walk around the walls and to all the other cultural venues dotted around there."
"The plans will not come to fruition until we're two or three years down the line, but it will give us a wide range of hotel stock."
"There are particular times in the city when it's difficult to get a hotel room or a place in a B&B, especially during bank holiday weekends, so this would make a difference," she added.
(PR/JM)
