Melb hotel redevelopment extended

The owners of Melbourne's historic Hotel Windsor have been told they have "no further excuses" to delay completing its $330 million redevelopment.

Halim Group has won an extension to its 2010 permit to redevelop the Spring Street hotel - including a new 93m tower behind the 19th century hotel - in the Victorian Civil and Administrative Tribunal, after successive governments refused a longer completion time.

Without the extension, the permit was set to expire in January 2017.

Hotel director Adi Halim said the Windsor would be saved and "brought back to its original glory" with the redevelopment, which would close the hotel later this year for the demolition of the Bourke Street corner building.

"We always had faith that any fair and independent decision-maker would recognise the huge community benefits from saving the Windsor, which is Australia's last grand 19th century hotel," he said.

"Six years ago, the independent advisory committee concluded that the hotel could not survive without the redevelopment."

He defended the height of the new tower, saying there were 100 taller towers in the Melbourne CBD.

Planning Minister Richard Wynne said the owners needed to start work.

"They've had a permit since 2010, that's a very long time - we're now into March 2016, but with this extension of time there is now no excuse for the owners of the hotel to not get on and commence this important building for Melbourne."

Opposition planning spokesman David Davis said there was now a risk the hotel would be torn down.