Representatives from the luxury hotel brand, development company SKS Group and Tourism Minister Kim Hames broke ground at 100 James Street on July 7.
DoubleTree by Hilton and the SKS Group have already partnered for hotel sites at the new Perth waterfront and Fremantle but the 16-storey, 205-room Northbridge hotel will be completed first, in 2017.
Lord Mayor Lisa Scaffidi said the City of Perth had identified a lack of short-stay accommodation options in Northbridge, so DoubleTree by Hilton would provide much-sought-after high-quality accommodation for visitors looking to stay in the city.
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READ NOW"Northbridge is a family-friendly precinct, which is constantly improving, and this new development by Hilton is testament to its evolution and the potential of the area," Ms Scaffidi said.
Dr Hames said Northbridge had "changed enormously" in the past five years.
"This area will continue to grow in popularity with the development of Chinatown, restaurants and apartments, and the sinking of the railway line that will create better access to the city," he said.
The Deputy Premier said the 600-plus rooms at the Northbridge and Perth DoubleTree by Hilton hotels would help the State Government reach its target of 1900 rooms by 2020.
"Our task now is to make sure the rooms stay full," Dr Hames said.
"We need to look more at the leisure and tourist market."
Ms Scaffidi said the City was in the midst of an exciting period of growth with landmark new developments coming to completion and major works to enhance accessibility beginning.
"The way we view, experience and interact with our city is changing, and the atmosphere and accessibility of Northbridge is expected to transform dramatically as the Perth City Link Project evolves," she said.
"Increased pedestrian traffic, more visitors exploring the CBD and more people travelling to and from Elizabeth Quay and Northbridge is set to really shake up the atmosphere of our city."
Hilton Worldwide Australasia operations vice-president Paul Hutton said Northbridge was a vibrant suburb where arts, culture and entertainment came together.