The former headquarters of Harland & Wolff, where RMS Titanic was designed alongside more than 1,000 other ships, has been vacant since 1989.
The lottery grant will specifically focus on developing the two historical drawing offices as spaces for public use. The boutique hotel will also tell the story of Belfast’s industrial heritage, focusing on the authentic spaces - Board Room, Telephony Room and Entrance Lobby – as well as the fixtures and fittings that relate to the local shipbuilding industry.
Kerrie Sweeney, chief executive of Titanic Foundation, said: "Titanic Foundation in partnership with Titanic Quarter has been working on this project over the last two years. It has been a long process but worth it. With HLF’s support we will safeguard the drawing offices for future generations and unlock the commercial potential of the entire building as a boutique hotel with heritage at its core."
A number of major hotel operators are in talks to open other hotels in the vicinity.
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