The much-loved landmark building in Hobson St was the Farmers Department Store for 70 years until 1991. It was converted into a hotel and apartments in 1998.
It is home of the All Blacks when they stay in Auckland, including during the Rugby World Cup in 2011.
When chunks of plaster and masonry came away from a windowsill area in September last year and holes were cut in the exterior to reveal brickwork, steel and wood, hotel group operations manager Gary Jarvis told the Herald it was not a structural issue, but remedial work.
Yesterday, Mr Jarvis said engineers were looking at the situation and would report to the body corporate. The problems related only to the architectural facade and there were no issues with the building itself, he said.
"We don't have water coming into the building or anything like that," Mr Jarvis said.
The apartment owners, who did not wish to be named, said they were aware of potential problems when they bought their apartment last year.
However, they were surprised that the body corporate had only just discovered the plastered, double-brick facade had been erected over the building's original walls.
The body corporate advised unit owners just before Christmas that it appeared water had been running down the back of the facade and rusted the ties that held the brickwork to the original building.
"All of the windows in the building are leaking, including the steel windows in the original facade and the new windows in the new [circa 1934] facade.
"At this stage it is too early to discern any meaningful scope of the works, however clearly the outer facade will in likelihood need to be removed, window areas remediated, and possibly earthquake strengthened.
"The scale of the work is quite significant in that it involves approximately two and a half sides of the building," the report said.
The units are owned by a mix of investors, individuals and the hotel.
Leaky hotel
• Water appears to be leaking between original 1921 building and 1934 facade.
• Masonry and plaster came away last September.
• Closer investigations reveal serious problems.
• Two and a half sides of the building require significant work.
• Unit owners do not know cost of repairs but told it will be significant.