The Verge Hotel has risen off the ground, the developers say.
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Stay Tasmania managing director Lyndon Jago said the first stage had been time consuming.
"All the work to date has been getting it ready to rise up, it's now at the stage where all the ground floor concrete slabs have been poured and they've commenced laying the pre cast concrete walls," he said.
Mr Jago said the project was still on track for a practical completion by mid February 2020.
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However, there have been some challenges.
"The ground has been softer than originally forecast which required more concrete, but that has all been sorted," he said.
"I'm told that once the first floor is poured then it will basically grow each month after that."
The arrival of the crane has created a bunch of excitement within the community, with lots of heads being turned.
"I was pretty excited to see the crane in the sky," Mr Jago said. "The builders, Fairbrother, have been fantastic so far."
The development is six stories-high and will have 86-rooms.