Construction of the Silo Hotel will go more than $7 million over budget, according to owner Errol Stewart.
The original budget for the project was $20 million, however Mr Stewart said the project was likely to end up costing about $27.5 million.
He said the development had been a “demanding and challenging project”.
“I’ve made some changes to it [during construction], for the better in my view, and every time I make a change it costs me some money,” he said.
“We’ve leased some crown land off the government on the foreshore, so we’ve done some work on the wharf, and that will be another public domain.
“We’ve created some car parking and really improved the space over there.”
Despite the ballooning costs, Mr Stewart said he had no regrets about the project’s expenditure.
“I’ve probably spent more money than I should have, but it’s not all about money – it’s about doing something that you really enjoy, and creating something out of not much,” he said.
“I think we’ll create a very iconic building and hopefully my grandchildren will be proud of me when I’ve gone to heaven.”
Construction is due to be finished by May, with work to cut the last of the windows into the former grain silos beginning on Thursday.
Construction crews cut the first window of the ninth storey early on Thursday morning, with the rest to be completed over the next week.
All that remains now for the exterior of the hotel is to waterproof and paint the silos, before slowly removing the scaffolding level-by-level, according to site construction manager Craig wood
Mr Wood said the unorthodox nature of the development presented several difficulties in the window-cutting process.
“Cutting the windows has always been a challenge, because you’re cutting on curves,” he said.
“Height’s also an issue – we’re not doing many multistorey buildings in Launceston, so that always slows you down.”
Mr Stewart said it was “gratifying” to see the project near its completion.