The 12 storey building will consist of 169 first class, 14 VIP and two VIP deluxe rooms, a conference centre, a meeting hall and a restaurant, as well as recreational and sports areas.
The $16.5 million hotel will be built by the Lao Chicharuen Company and is scheduled to be finished within 15 months.
This is the second hotel in Laos invested by the HAGL Group, which has been involved with many other projects in the country.
What the stars mean:
★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional