Chatwal, the current Chief Executive Officer and Chairman of Hampshire Hotels Management, would remain chairman of the group.
Danziger's appointment is effective from April 7.
Chatwal said Danziger, who has more than 40 years of experience in the hotel business, would focus to enhance the group's brand and drive its future leading "the next phase of growth strategy" for the city-based company.
Danziger "is one of the most talented minds in the hospitality industry and a true leader with a passionate hands-on approach," Chatwal said in a statement.
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In his new role at Hampshire Hotels, Danziger would focus on growing the group's third party management and asset management portfolios, in addition to expanding the firm's proprietary 'Dream' and 'Night' lifestyle brands.
Danziger has held key positions in global hospitality brands like Doubletree, Carlson, Starwood, and Wyndham Hotel Group.
Founded by Chatwal in 1986, Hampshire Hotels owns and manages hotels in New York and Miami as well as in the United Kingdom, Thailand and India.