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Wains Hotel, in Princes St, will reopen in late 2018, revealing an ''opulence and standard'' not seen in Dunedin.
General manager Sally Reiber said the hotel dated from 1862 and was steeped in history.
''She is a grand old dame with quirks and personality - located perfectly in the CBD to take advantage of Dunedin's business district and retail shops, all of which are key features for corporates and leisure visitors to Dunedin.
''The revamped Wains Hotel will cater for those looking for the ultimate in boutique hotel experiences.''
She said more than $3 million was spent on refurbishing all areas of the hotel, including 50 guest rooms on seven levels.
''Its design has embraced not only the history of the hotel but also the early culture of the city and its Scottish links and the gold rush era of the 1800s.''
She said guest rooms and public spaces would boast rich materials, tones and soft luxury fabrics, paired with a unique, personalised style of customer service which would ensure the boutique hotel offered comfort, contentment and a feeling of wellbeing.
The completed hotel would also include a restaurant, bar, gym and meeting facilities.
''This boutique level of hotel product has been long awaited,'' she said.
The hotel is part of CPG Hotels, one of New Zealand's largest privately-owned hotel groups, which has properties in some of the country's tourist hot spots.