Initially a start was expected in February for a 2015 opening, but this has been delayed by other nearby commercial work.

The Volt Lane retail precinct underneath Albury Council’s multilevel car park has recently been completed, with several of the 24 lots already sold.

The 12-month delay to the start of the hotel has not affected the scale or cost of the project, which will deliver 120 rooms over seven floors when it is scheduled to open in 2016.

The hotel will be operated by the international Accor Group.

An Accor Pacific spokeswoman said yesterday the new construction timeline had only just been confirmed, following a meeting between its development team and Novotel Albury’s owners.

“As the hotel is part of a staged development, including commercial space, there is a phased approach with the build,” she said.

“The next stage will commence in the first quarter next year and the property is still on track to be complete in the first quarter of 2016.”

About 200 workers are expected to be involved in building the 4.5-star hotel in Smollett Street, with 30 permanent jobs to be created when the hotel opens.

The hotel will also feature two restaurants, four banquet and events area, a gym and a corporate lounge.

It will straddle an access ramp to the council’s car park above the new Volt Lane shops.

Albury mayor Kevin Mack said in February that construction of the hotel was another milestone for the Volt Lane development.

It was also proof, he said, that the council’s major focus on attracting development and investment in Albury was “delivering results”.

But a spokesman for the council said that since it app-roved the development, it had not received any updates on a likely start date for construction.

Novotel has 28 hotels across Australia with Albury to join an established global network of nearly 400 Accor hotels and resorts in 60 countries.

Accor Pacific chief operating officer Simon McGrath lauded Novotel’s Albury move as a signal of a growing confidence in the domestic market.