A "very small number" of properties were not directly notified of the Gorge Hotel proposal by the City of Launceston council.
The council has re-advertised the application to allow all residents and stakeholders to have appropriate time to consider the project and make representations if they wish.
However, nearly 40 people will need to resubmit their representation if they want it to be considered because their original submission will not be brought across.
City of Launceston council general manager Michael Stretton said those representors had been contacted and asked to resubmit their representations.
One of the property titles was missed off the advertised development application which meant at least one neighbour was not contacted.
Mr Stretton said the original plans advertised did not include each separate land title.
"When we became aware of this, the council opted to re-advertise the DA with each separate land title included to ensure those property owners receive direct notification of the DA," he said.
"The application will now close at 5pm on Monday, May 27, and re-advertising the DA will not impact the planning approval timeline for the proposal."
Neighbours, who said they were not contacted, have voiced their concerns.
The hotel's proposed height, over shadowing and increased traffic were the main concerns of nearby business owner Susie Cai.
"We were not sent anything regarding this. We have gone to the council with questions, but were told we had to wait and will be notified," Ms Cai said.
"However we never received any information regarding the matter until it was too late."
The business, which is also her house, has a $36,000 solar system that was installed last year and she believes the hotel would not allow sufficient sunlight especially in winter.
The neighbours are also concerned the building is being constructed on a river bend and are worried the ground work would affect their properties foundations.
"There are smaller things like privacy where people in the hotel will look straight into our living space," Ms Cai said.
The first development application for the nine-storey $50 million hotel was advertised on April 13.
It would be 145 rooms and have a 500-people conference centre, 200-seat bar and restaurant, function rooms, rooftop cocktail bar, day spa and gym.
Parking for 175 vehicles is also planned.
The proponents, JAC Group, were contacted for comment.