Skyline Gondola, Restaurant and Luge manager Blair Deasy said the refurbishment, including contemporary decor, timber detailing, an extended bar and new sound and lighting system, was planned for May and June next year.
The corridor space from the restaurant/entrance level through to the Wakatipu Room entrance and viewing deck area would also be included in the upgrade.
Mr Deasy said the new sound and lighting system would offer flexible locations for staging and rigging depending on venue set-up requirements.
The entire venue could also be "blacked out", with full blackout curtains installed.
One of five function venues at the Skyline, the Wakatipu Room could host up to 220 people for exclusive dining or up to 350 people for day conferencing.
It could also be divided to cater for smaller groups.
The Wakatipu Room refurbishment would coincide with the scheduled gondola upgrade, when the entire Skyline complex would be closed from May 11 to June 7, inclusive.
The gondola upgrade would result in a 700 to 1000 person increase in capacity and allow priority queuing at the gondola base to be introduced for conference and incentive groups.
Mr Deasy said he was "absolutely thrilled" with the planned modernisation of the Wakatipu Room, which would see the entire facility "well and truly world class".
