The five-star hotel will be set within an office and conference complex, about a 45-minute drive from Indira Gandhi International Airport in Delhi, in the historic neighbourhood of East Delhi, Shahdara.
It will feature 480 rooms and suites, four restaurants and a bar, and conference and banqueting facilities, including a Grand Ballroom accommodating up to 5,000 people.
The property will also offer extensive spa and fitness centre with a sauna and hammam and two swimming pools.
The hotel group said that the opening of the Kempinski Ambience Hotel Delhi does not affect the 25-year marketing and sales relationship between Kempinski Hotels and Leela Palaces, Hotels & Resorts.
In 2011, the parties agreed that it was in the interests of both groups, to optimise the relationship, by aiming for a progressive and controlled phase-out over the next few years.