The St Regis Mumbai will occupy the building currently home to the Palladium Hotel in the city's Lower Parel neighbourhood.
Due to open in the third quarter after an "extensive" rebrand, the 38-storey hotel will contain 386 guestrooms, including 60 suites.
Facilities will include an all-day dining restaurant, four specialty restaurants, a club lounge, three bars, a swimming pool and a fitness centre.
There will be over 5,200 sqm of meeting and event space including a 4,200 sqm ballroomn.
Jim Petrus, global brand leader at St Regis, said: "Starwood is maintaining strong growth momentum in the region and the arrival of St Regis in Mumbai reinforces our commitment to growing our luxury portfolio in this important market."
St Regis Mumbai is owned by Pallazzio Hotels & Leisure.
Starwood currently operates 43 hotels in India, with an additional 37 in the pipeline.
Earlier this year, the group announced plans to open more than 40 new properties across Europe in the next five years, including four St Regis hotels in 2015.