The $600,000 extension that began in May, will add about an extra 100 square metres to the inside of the conference room and 14 square metres to the foyer adjacent to the area.

Hotel general manager Glenn Robertson said banquet capacity sat at 350 people but once the works were completed it would increase to 450.

``We'd reached our capacity for some functions in that room and we wanted to work with these clients to increase their capacity for functions,'' Mr Robertson said.

``Most of these are charities so it will enable them to sell more tickets.''

Mr Robertson said the extension was part of a major refurbishment program that has been under way at the hotel for some time and has included rooms and other areas.

The conference room has not been significantly altered since it was built by the previous owners in 1999.

It is expected the work will be completed by the end of August.