Located at the corner of Dee and Don Sts in the heart of Invercargill, the Invercargill Licensing Trust’s new 4.5-star hotel was planned to be handed over by December 20.
However, ILT chief executive Chris Ramsay said with the recent restrictions, the work was now expected to be completed by March next year.
"These restrictions, particularly in relation to distancing requirements, have meant trades have had to be spread across areas to ensure they do not interact. In turn this obviously has an impact on how efficiently construction can occur, reducing output and therefore negatively affecting [the works] programme."
The delay also brought a financial impact for the ILT, he said.
Initially, the ILT had a budget of $50million for the completion of the project.
Mr Ramsey said numbers still needed to be confirmed but he believed the last lockdown cost the trust another $500,000.
"I think the total project budget will be close to $51million, taking in consideration all the lockdowns," he said.
Despite the delays, he was happy with what contractors had achieved so far.
"Other than the fact that Covid has hit us twice now, the progress is pleasing. Covid continues to add frustrations, in particular around the fact that Alert Level 2 reduces the productivity and this unfortunately comes with a cost.
"But we have been realistic and [have been] controlling the cost when it is possible — but no-one can control Covid."
