The Invercargill Licensing Trust (ILT) is planning to put $7.5 million into its portfolio of commercial properties over the next 12 months.

ILT board members recently approved the capital and project maintenance budget for the 2019-2020 financial year.

The following large scale projects on the agenda are room refurbishment across all six of its accommodation properties ($1.475m), Ascot Park Hotel including its conference room and roof ($1.197m), Homestead Avenal redevelopment ($1.92m), and the Kelvin Hotel Level One bar and carpeting ($438,000).

Chairman Alan Dennis said reinvesting in its existing businesses was a long-standing focus for the organisation and crucial to its on-going commercial success.

"New projects like The Langlands hotel are exciting but we are also acutely aware of the responsibility we have to ensure all our properties are well-maintained and continue meeting the needs and expectations of our community," he said.

"This year's plan again has a focus towards our accommodation properties as we seek to maintain current market positions in the lead up to the new hotel build."

Chief executive Chris Ramsay said part of the multi-million dollar budget was the result of projects deferred or unable to be completed in the last financial year.

The full list of projects would likely take until the next financial year to complete, and depending on the level of works completed, it was likely to have a reasonably significant impact on ILT's profit result for 2019-2020.

“However, the community can be confident it is budgeted to be achieved whilst maintaining our current grant levels.”

The balance of $2.47m in work would be shared across ILT's other businesses and represented "typical" repairs and maintenance.

Cash flow projections for the new $40m inner-city hotel were predicted based on achieving "very aggressive" capital and maintenance targets.

"Completing this work will ensure we are giving our existing accommodation properties the best chance possible to mitigate the drop in occupancy levels that will happen once The Langlands opens," Mr Ramsay said.