"We are still trying to finalize financing," said local engineer and businessman T.R. Reddy, the owner and developer of the project.
Reddy acquired the property at 444 Broad St. -- formerly home to the Regency Inn -- in 2009. The Regency Inn was constructed in 1965, making it eligible for certified historic structure status, according to Erick Montgomery, the executive director of Historic Augusta.
In March 2010, Reddy said he planned to spend $5 million or more on the project, gutting the existing structure to the steel framing.
"It's a total revamping," he said then. "I'm very confident that it will do well, and it will clean up the area."
Reddy said Monday he still is confident that the project will be a success, but has been delayed by other construction projects that have also run behind schedule.
"Financing has been the challenge," he said.
He expects to break ground in October or November , and pre-construction plans are 90 percent complete.
The hotel will be a "green" building and will meet Leadership in Energy and Environmental Design certification, using geothermal air conditioning and solar systems to reduce water-heating and other power expenses.