A planning tribunal will make a decision next week on whether the proposed Gorge Hotel can proceed.
Developers of the project, the JAC Group, were hauled before the Resource Management and Planning Tribunal last month after the project won approval from the City of Launceston council.
The 39.5-metre high hotel is proposed to be built on the corner of Margaret and Paterson streets.
The tribunal was scheduled to hand down its decision on the development on Friday but asked for an extension until November 8.
Opponents to the development are concerned the new nine-storey hotel would visually impact the city as well as nearby residents and businesses.
Its developers claim the $50 million hotel's construction would create up to 200 direct and indirect jobs.
The hotel is expected to contain a function room, day spa and gym.