Contractors are putting the finishing touches to the refit of the top three floors of the 108-year-old central Dunedin building, which is being turned into 19 units of high-quality accommodation.
Developer Meteor Properties Ltd director Chris James, of Queenstown, said the hotel was expected to be ready for opening on January 1.
He said the building had been leased to a Queenstown couple to operate as a boutique hotel, but could not say what it would be called.
The building has a rateable value of $2.7 million and is category 2 listed on the Dunedin City Council's heritage schedule. It was originally the John Chambers & Son building.
Despite the changes within, the facades of the building have been protected, the colour remains untouched, and the exterior windows have been replaced with double glazing.
There are 10 basement car parks under the building, of which nine will be available for the hotel.
The ground floor tenancy of Cycle World was expected to continue.
