The $8 million, four-storey Mercure Newcastle Airport currently being constructed will incorporate 95 rooms, a restaurant and conference facilities for 200 people.
The hotel was approved in June 2013 by Port Stephens Council and is expected to be operational around mid-2015.
Mercure Newcastle Airport is seen as an important further step in the growth of the Williamtown Aeropace Centre, providing quality accommodation and facilities for both commercial and tourist visitors and effectively increasing the catchment area of the airport.
Travellers from the Central Coast, mid-North Coast and Upper Hunter will be able to stay overnight for morning flights.
It will also be valuable for the growing number of companies based at the WAC, both in term of accommodating visitors and providing quality function facilities.