Located on the corner of Dee and Don Sts in the heart of Invercargill, the ILT’s new Langlands Hotel was planned to be handed over by next month.
However, ILT chief executive Chris Ramsay said the most recent Covid-19 outbreak put more pressure on the project and now it was expected to be completed by mid-year.
He said the building company was struggling to get staff to complete the project.
"We have about 100 people on site at the moment but our expectation always has been to increase numbers near completion. However, we are having difficulties to get those."
Another critical point which made the ILT board delay the opening was the lack of confidence on the Government’s plan for opening New Zealand’s border.
Mr Ramsay said the Kelvin Hotel and Ascot Park Hotel, which were managed by ILT, were 70% down from where they would normally be at this time of the year.
"The plan doesn’t give us any confidence on an increase for demand until probably July — more likely that the situation will not improve for the next six to eight months.
"Although it is a bit frustrating because we are looking forward to opening the hotel, we have no confidence, so we are being cautious."
Despite the delays, Mr Ramsay said he believed the project would be completed under the budget of $51.2million.
"There will be no financial impact. It will only add time for the completion."
