Sanguine Hospitality has secured a £10m deal to develop a new four-star hotel, restaurant and a luxury health club and spa at The Cube building in Birmingham.

Michelin-starred chef Marco Pierre White will join forces with the group to open a skyline eatery on the 25th floor, which will offer panoramic views of the city.

The 23rd and 24th floors will become a 52-bedroom Hotel Indigo, while The Club and Spa will occupy the bottom two floors of The Cube.

A wet area comprising a hydrotherapy pool, five thermal treatment rooms; a gym; and a ten-room spa will be among the facilities at The Club and Spa.

Sanguine's in-house construction firm, Denizen Contracts, will start work on 4 January to deliver the phased fit-out of the scheme, which is due for completion in August 2011.

The £10m deal with Birmingham Development Company will be Sanguine's first venture in the West Midlands and has been financed by Downing Corporate Finance and Lloyds TSB Corporate Markets.

Sanguine managing director Nick Taplin said: "We have no doubt that The Cube will become the place to eat, sleep and be seen when visiting the city."