The 351-room Grand Hyatt Grand Cayman Hotel & Residences on Seven Mile Beach is slated to open in 2020.
"The opening of this hotel will mark the return of the Hyatt brand to the Cayman Islands," said David Tarr, senior vice president of development for Hyatt.
Hyatt officially pulled out of Grand Cayman in December 2007 when its 20-year management agreement expired for the Hyatt Regency Grand Cayman. The hotel, however, never reopened after it was damaged by Hurricane Ivan in 2004.
The new Grand Hyatt will sit on a seven-acre beachfront site on the southern end of West Bay Road, a mile from George Town and a 10-minute drive from the airport.