Queenstown Lakes District Council commissioners Lee Beattie and Jane Sinclair refused consent for the development in February.
Safari Group director Robert Neil said the appeal led to mediation last month with the council, Blue Peaks Lodge owner Skyline Enterprises and Wakatipu View Apartments’ body corporate.
The resulting "minor" changes included design changes to the building’s Frankton Rd frontage, the resolution of acoustic issues through fencing, construction methods and consent conditions, and changes to its internal traffic movement and parking.
The five-level building will have 131 rooms, two residential apartments, a restaurant and conference rooms, an on-site car park and a bus parking and loading area.
It will be built on a vacant site at the intersection of Frankton Rd and Stanley St, which is notable for a giant Wellingtonia redwood (Sequoiadendron giganteum) tree.
Mr Neil said the tree was the focus of the hotel’s design from the start.
It would have outdoor seating beneath it, and be lit up at night.
"It’s a massive identity for the site, and a massive benefit for what we’re doing."
The site was cleared of vegetation a fortnight ago, perimeter fencing went up this week and earthworks and piling would start next month.
He expected the build to be completed by August next year.
Safari Group opened the Ramada Hotel and Suites complex in Frankton two years ago, and a Wyndham Hotel on an adjoining site in April.
It has applied for consent for a third hotel in Frankton, the Ramada Kawarau River, construction of which is planned to start early next year.
The $95 million development will have 87 hotel rooms and 91 residential apartments.
