The application by Singapore-based Fragrance Group for a 143-bedroom hotel was unanimously approved by Blackpool Council's planning committee.
It is set to be built between Woodfield Road, St Chad's Road and Bolton Street.
The site currently lies empty after St Chad's Hotel, which had stood on the land, was demolished in May.
Alistair Shepherd, representing Fragrance Group, told the meeting the company had consulted with local stakeholders.
"The applicant is one with a proven track record of building and managing hotels of a very high standard," he said.
Once open, about 40 full-time jobs would be created as well as up to 30 part-time jobs during peak season, the meeting heard.