Plans for the two-hundred room building in Orchard Park have been agreed.
Concerns had been raised that the hotel would not have enough parking, which could make existing parking problems in the area even worse.
However, Cambridge City councillors said this could be managed, in part by the authority’s new civil parking enforcement powers.
The rooms provided in the hotel are proposed to be a mixture of standard hotel rooms and aparthotel rooms for longer staying guests.
A restaurant, bar and cafe are also in the plans.