B-Group chief executive Andrew McIntosh said construction of the boutique hotel planned for Brownston St in the central business district of Wanaka was due to start just before the Covid-19 crisis.
He said construction was now on hold.
When finished, the $12.47 million hotel would comprise 35 private rooms built across three levels providing accommodation for up to 70 guests.
There would be internal and external guest lounges, a ground-floor retail cafe and a roof-top bar and bistro.
Mr McIntosh said they were ‘‘monitoring border matters and will also watch occupancies as the market recovers.
"Once occupancies start to get to a sustainable constant level, we will start construction."