The hotel will be built alongside the Kamogawa river, which is one of the most popular walking spots, particularly during the cherry blossom season in the spring.
Strict regulations on the construction of buildings within the metropolis — which remains one of the few low-rise cities in Japan — mean that the hotel will have a maximum of four floors above ground but a further three levels underground.
The hotel said the property will have 140 guest rooms, with standard guest rooms an average of 50 square meters, among the most generous of all luxury hotels in Japan.
Despite its popularity with both domestic and international travelers, Kyoto has been notoriously lacking in top-class accommodation options.
Rooms at the Ritz-Carlton, which is being built on the site of the demolished Hotel Fujita Kyoto, are expected to start at around Y50,0000 (€481) a night.