Work on the expansion of the Victoria Hotel, in St Andrew St, Dunedin, is ahead of schedule.
The inner-city hotel is nearly doubling its capacity and a three-storey building rising beside the existing hotel.
The new building, connected to the old with a central canopy, will house 30 four-star hotel rooms, increasing capacity from 42 to 72.
Yesterday, hotel duty manager Ben Cochrane said construction was "very much on track'' and it appeared likely to open at the beginning of October rather than the end of that month as originally predicted.
Blocks on the second level were due to start going up this week.
A lot more structural work was expected over the next couple of weeks, and the roof should be on within the month, Mr Cochrane said.
It had been "fascinating'' to watch the development from the hotel's reception, and guests were also intrigued.
"It's great to see some new construction, [in the city]'' he said.
