The project, in 236-246 Clyde Street, will be the brand’s second hotel in Scotland and is due to be completed next year.
Plans for the hotel reveal it will be designed with panoramic river views and have 242 bedrooms and suites, a meeting and event space and multiple dining and drinking outlets.
The brand's signature restaurant and bar Commons Club will also be available to guests and the Funny Library Coffee Shop – a communal work space.
Sir Richard said: "Glasgow is a dynamic city with a rich history that is extra special to me as my wife Joan is a proud Glaswegian.
"Since launching our first property in 2015, Virgin Hotels has established a beloved brand, always ensuring that our offerings embrace and showcase the local community culture for all travelers to enjoy; and this property will surely do the same."
Speaking about the new development James Bermingham, CEO of Virgin Hotels said: "We are thrilled to announce this exciting development in the vibrant city of Glasgow.
"Glasgow features distinctive art, music, shopping and much more, making it the perfect destination for our newest hotel.
"Virgin Hotels Glasgow will possess all of the defining characteristics of our brand, including innovative Chamber (room) design, forward-thinking technology, creative food and beverage offerings and unforgettable entertainment.
"We look forward to welcoming both locals and visitors to enjoy our unmatched lifestyle experience."
Virgin Hotels Glasgow will be completed in partnership with owner and developer Silk Property Group alongside Siggis Capital as the asset manager
Work is also currently underway for a Virgin Hotel in Edinburgh on the site of the former India Buildings in the city’s Old Town, part of the UNESCO World Heritage site.
Set to be completed in 2022, the luxury hotel will provide 222 guest rooms, bars, restaurants and function space and will create more than 300 jobs.
Its design includes both old and new style architecture to “reflect the city’s eclectic and energetic style, while remaining true to its historic heritage”, according to Virgin Hotels.
The Edinburgh Virgin Hotel’s opening was delayed by a year after an extensive archaeological dig uncovered evidence spanning more than 1000 years.
Groundworks took around three times longer than expected due to the unprecedented nature range of objects and material dating back to the 10th century.
Remains of buildings dating as far back as the tenth century were found and the work has also unearthed ditches and walls marking the original boundary of the city. It has been reported some of the discoveries could date as far back as the Bronze Age.
Also discovered at the Cowgate site were a human skull, a drinking vessel, shoes, jewellery, tools and knives, along with a ball used in a giant catapult and an early cannonball.
Virgin Hotels also owns sites in Chicago, Dallas, Nashville and recently opened a hotel in Las Vegas and will be opening hotels in New Orleans and New York City this year.
Virgin Hotels Edinburgh, Glasgow and Miami are planned for 2022.