The proposal by the Invercargill Licensing Trust (ILT) would result in a 4.5-star hotel being built on the corner of Don and Dee Sts.
It would include a variety of bars and eateries.
Independent commissioner John Maassen heard the ILT present its case further during the hearings on Wednesday morning, as well as a handful of public submissions in the afternoon.
Of the 18 public submissions, seven asked to have a further say during the hearings.
Invercargill resident Cain Duncan supported the proposal, saying it would provide a much needed rejuvenation of the CBD.
Using laneways to enhance eating and drinking areas was a "creative way to provide protection against Invercargill's often indifferent weather", he said.
New Zealand Heritage Properties Ltd managing director Dr Hayden Cawte said the hotel would create benefits to heritage and allow for better use of other buildings in the area.
"Our investigations always ask `are there better heritage outcomes on the base of a development project?', and in this case we are opining that actually there are greater benefits to heritage by undertaking this project than there would be otherwise."
One concern was raised by Dee St residents Henricus and Trudy Ophuis about privacy for their property, both recommending a different style of windows from the overlooking hotel to avoid people being able to see down into their balcony area.
However, project consultant manager Tim Joll said he would not be recommending any changes to window types, commissioner Mr Maasen instead suggesting lattice could be used as protection to Mr and Mrs Ophuis's property.
Another concern was raised by residents Nathan Surendran and Roger Hodgkinson, who advocated for the hotel to use cross-laminated timber in the build.
Hearings for the proposal were scheduled to take place over three days but with no clear objectors to the project, it was concluded in one.
A decision by Mr Maasen is expected within the next 15 working days.
