The property is expected to open in 2019 and will be set around the grade II listed building.
It will feature more than 160 bedrooms with an outdoor rooftop swimming pool overlooking the iconic chimneys.
Rob Tincknell, chief executive of Battersea Power Station Development Company, said: “The selection process to find the right brand and operator was a very competitive and thorough one, involving the leading hotel brands from around the world.
"Art’otel was a standout winner, a brand unlike anything we have seen in London to date, and it is particularly fitting for it to have art at the very heart of the brand and the hotel itself."
Boris Ivesha, president & chief executive, PPHE Hotel Group, said: “The Battersea Power Station Development will transform London’s skyline; creating a new destination and hub for local communities, visitors and residents."
Art’otel is part of the PPHE Hotel Group which operates a majority of their 38 hotels under two brands: Park Plaza Hotels & Resorts and art’otel.