The new Mercure Sofia hotel will be located in the neighbourhood of Manastirski Livadi and will have 111 rooms, Accor said in a statement on Monday.
It will also include two restaurants, a wellness and fitness centre and meeting and event spaces.
The hotel will be operated by local hospitality chain Festa Hotels under a franchise agreement.
Mercure, founded in 1973, has over 950 hotels across more than 65 countries.
Accor operates more than 40 hotel brands, with over 5,600 properties in 110 countries, its website shows.