The 139-year-old Cardrona Hotel, 20 minutes from Wanaka in Central Otago, is undergoing a $1 million redevelopment.
The hotel, a favourite with skiers and travellers taking the back route to Queenstown, is adding extra accommodation wings and extending the restaurant and bar areas.
English owner Mark Westcott is adamant the historichotel will not be ruined.
"I did not buy it to ruin it. I have a passion for old and historic buildings and a passion for this area."
His Surrey-based business involved restoring old English cottages and pubs, some 500 years old.
With completion and opening date set for July 1, the hotel's five accommodation rooms were being expanded to 21, all with en suites.
The hotel manager, Roger Gordon, said a spa and a guest laundry were being added.
The expanded accommodation would cater for up to 50 guests, and four rooms could be opened for families.
Mr Gordon said the restaurant area would be extended by about 6m and the bar would be rebuilt at the northern side of the hotel.
The old stables had been demolished to make way for the additions.
Mr Gordon said the wood had been salvaged to be reused as cladding, along with stacked stone walls, to continue the original theme.