The 150-bedroom hotel will be situated on Rougier Street, providing a new purpose to the Aviva insurance building.
The establishment will also include an event space that can accommodate 180 guests, multiple meeting rooms, a spa and gym, and an on-site Starbucks.
In addition to the “iconic” Chez Mal Brasserie and Bar that features at Malmaison hotels nationwide, the York site will feature the brand’s first separate SkyBar.
The bar will offer cocktails and pan-Asian sharing plates alongside “stunning city views” from its roof-top terrace.
A spokeswoman for the firm highlighted that designers for the hotel have taken inspiration from the city’s “industrial heritage and brutalist architecture”, resulting in a “moody” tone to the property.
Malmaison, which was bought by Frasers Property Group for £363m in 2015, will now operate over 16 properties across the UK.