Construction on the property has already begun with the company estimating the build to be finished by May 2021.
The venue which will be Whitbread’s most “northerly hotel in the UK” is set to house 85 bedrooms.
The building is one of four new Premier Inn hotels opening this year, with the company also revealing plans to launch in Edinburgh Princes Street, Waverley, Hamilton Townhead Street and St Enoch Square, Glasgow.
Richard Aldread, head of construction at Whitbread for the UK regions, said: “We’re making good progress with construction of the new 85-bedroom Premier Inn hotel in Thurso, which will be our most northerly hotel in the UK when it opens.
“At the moment we’re on track to open the hotel in May, in good time for summer where we’re expecting high demand for staycations and short breaks.”
He added: “Given the natural beauty of the north coast of Scotland, and the popularity of the North Coast 500, we predict the hotel will trade well across all four seasons and will provide a new style of accommodation to visitors.
“From experience, we also find that our ‘light touch’ offer supports the local economy as many of our customers go out to eat, drink, visit attractions, do activities, and generally enjoy the local area when they stay with us.