One room, known as "Charlotte's Room" named after the hotel's supposed ghost, suffered the worst damage.
Thirteen guests had to be urgently relocated to nearby houses and cabins at 4pm on Wednesday.
A third engineer's inspection today was positive, Madden says, and hopes that the council will lift its red sticker within days.
Meanwhile, a cafe that Madden also runs in separate building beside the old hotel is open for business.
Before this week started with a jolt things had been going well for Madden's new hotel.
Last week was busy and accommodation was booked out for the next seven months, with contractors working on the Amuri Irrigation Scheme.
But Monday's quake has thrown all those plans into disarray.
"We live off the income of this, it's our livelihood," Madden said.