The site was cleared in October last year and workers from Ogilvie construction have been on site since.
The charred remains of the hotel, which was ripped apart by fire last year, was flattened by developers, to make way for the hotel.
The hotel is expected to bring around 60 jobs to the area.
Donald MacDonald, managing director, Ogilvie Construction, said:“It’s great to see work getting underway on site.
“Our team has extensive experience in the hotel and leisure sector and we look forward to delivering the new Premier Inn on time and budget.
“The building will be constructed to the highest standards creating a first-class facility in Hamilton.”
Nick Johnston, acquisitions manager for Scotland at Premier Inn, said: “We’re really excited to be bringing a brand new Premier Inn to Hamilton.
“Our development partner is making good progress with the build and we’re looking forward to revitalising such a prime location on Townhead Street, which has laid vacant for some time now, with a really striking new hotel and restaurant building.
“More than 60 new permanent jobs will be created on opening, with recruitment focused within South Lanarkshire, and we expect the hotel and restaurant will be very popular when the doors open next year.”
Original article courtesy of Daily Record.