The Mayfair Hotel will be demolished and replaced by 201 flats.
Permission has been given to pull down the hotel on St Saviour's Road.
Dandara will build the one and two-bedroom apartments for Andium Homes.
The hotel is closing at the end of October after more than 50 years of welcoming guests.
Owners, the Modern Hotel Group, said the continual challenges facing tourism, coupled with the impact of Covid-19, had made it increasingly difficult to operate.

Tourism bosses concerned about impact of UK autumn budget
Islanders asked about diesel and petrol car phase out
Government 'must act' to protect children from online harms
Jersey's skin cancer rates remain higher than England
Police warn of joyriders as two vehicles are taken
Strive Hotel blocked, £29m Millbrook House Hotel gets go ahead
Tiny Seeds launches campaign for Fertility Awareness Week
Public meeting called on future of Havre des Pas Lido