Infinity Investment Group's proposed 182-room Marina Terrace Apartment Hotel on Lakeside Drive was granted resource consent on January 12 last year, but the developers have been locked in negotiations with opponents of the complex.
Several neighbours appealed in the Environment Court the proposed conditions for the development, including the size and height of the complex and the number of rooms.
The number of rooms has been reduced from 202 to 182, and the developers have also agreed to lower the height of the complex at the northwest end to accommodate the views of neighbouring properties across the lake.
Infinity Group director Bob Robertson said it was great to have consent to build the hotel, but the delays meant they were now stuck in a poor economic climate, with investors wary of backing large-scale developments.
Initially, a single investor from an Australian fund had been ready to sign and develop the hotel under a "significant" chain name.
However, the delay to gain consent plus the weakening economic climate had caused the investor to "pull the pin".
"We couldn't get consent. They got nervous and decided otherwise," Mr Robertson said.
A sales and marketing campaign to attract investors will be launched in February 2009, but could possibly be put back if the current "difficult" investment climate worsened, he said.
"We like to sell about 50% of the development before we launch construction and then sell the remainder during the building process," he said.
Previously, there had been a high level of interest from investors and positive sentiment for the development. This had decreased "compared to a year ago" and Infinity had decided to delay its marketing launch until February.
"We had hoped to have everything in place to go by Christmas," Mr Robertson said. He admitted it was going to be a difficult for the investment market to stabilise and improve in the interim.
The hotel will have 77 apartments, with different configurations enabling up to 182 rooms. The initial long continuous building design had been modified to individual apartment-like blocks, which at their highest point will stand six storeys high.
The complex will be the biggest hotel in Wanaka and occupy a vacant hillside lot located below Lismore Rd, with lake views west across Roys Bay.
