The refurbishment of the 40-year-old community venue was recently completed ahead of the wedding season.
The building now has a commercial-grade kitchen, a new floor, new bathrooms, new plumbing, electrical and heating systems, and the exterior has been painted.
Lakes Leisure events and venues manager Jason (JD) Marrable said a burst pipe went undetected for nine hours.
When it was discovered the floor was under 10cm of water.
"There was total water damage and we had to get a new floor," Mr Marrable said.
Being on a strict budget, he could not have justified pulling out ceilings and walls if he had not been forced to because of the burst pipe.
"We pulled out all the old wiring and plumbing and brought the building up to the current building code, so there was a positive to the flood."
The new pipes were equipped with "heat tracers" which would automatically heat the pipes if they reached low temperatures like they did in July.
"We have future-proofed it so even if we get [record] 100-year cold temperatures we are not going to get the same problem."
Mr Marrable said the interior before the upgrade could be described as "domestic", whereas now it was "commercial", so it was easier to maintain and compliant with bylaws.
Hanging decorations for weddings had been anticipated.
A wire to which decorations could be attached had been run around the length of the inner walls which meant they no longer had to be stapled on.
The building, overlooking Lake Hayes, is mainly a wedding venue and is booked out for the coming season which generally runs from October to March.
While the new floor and ceiling work was covered by insurance, the Queenstown Lakes District Council's long-term plan had provided just over $84,000 for the upgrade.
