Sections of the hotel were destroyed during a fire in September, 2011.

It received $1 million from the Riverland Sustainable Futures Fund in December, 2012 and work to rebuilt the community-owned facility began in June this year.

Waikerie Hotel Motel chairman Graeme Thompson said the latest State Government funding, through the Tourism Development Support Program, would upgrade its conference and function facilities.

The Waikerie Hotel Motel at the start of its redevelopment in June

"This will be with the aim of giving us the ability to hold bigger functions than have been able to be done previously," Mr Thompson said.

Tourism Minister Leon Bignell said the funding would also support the refurbishment of the hotel's accommodation.

"This project, with 4.5 star accommodation and upgraded conference rooms, will be a significant boost to the region's tourism economy," Mr Bignell said.

The hotel will boast 19 renovated rooms at a 4-4.5 star standard once the redevelopment is complete.

"It would be fair to say the accommodation standard in the hotel itself wasn't of a particularly high grade, they were certainly very tired and in need of an upgrade," Mr Thompson said of the hotel's former rooms.

"We are well on track with the seven completed rooms and another seven at the moment almost at the end of their redevelopment.

"We believe it now gives it a standard of accommodation that wasn't available before, so one would hope that enhances the experience of visitors to the region."

Mr Thompson said the redevelopment was on schedule and that the majority of the works would be completed this year.

"It almost seems an eternity, it took a long time to go through the process with insurance companies, to then go through and appoint architects and start the build did seem to take a long time," he said.

Source: ABC News, 24 September 2013