An industry group is warning proposed new height restrictions for buildings in Christchurch's CBD could threaten the viability of future hotel developments, and see some hoteliers to steer clear of the city altogether.
The New Zealand Hotel Council says the seven story height restriction signalled under Christchurch City Council's draft central city plan would significantly diminish return on investment for hoteliers, who would be forced to operate with fewer rooms.
"The plan is calling for a more compact CBD, which we support...but it does not take into account the unique way hotels operate."
The nine storey Crowne Plaza, which was badly damaged in the February earthquake, would be almost halved in size if it were to be rebuilt under proposed height restrictions, council spokesperson Bruce Garrett said.
"The draft plan talks about a height limit for the CBD of just seven storeys, which decreases to five storeys where the Crowne Plaza is located, then four storeys going out to the fringes of the four avenues.
Crowne Plaza owners Eureka announced last month the hotel would be demolished as a result of damage sustained in the February earthquake and that it would be financially prohibitive to rebuild on the site.
Eureka cited higher construction costs and additional costs resulting from changes to the city's building codes for the decision.
Garrett said hotels realistically needed 100 - 150 rooms for them to be viable and it would be difficult to build that many rooms within seven storeys.
The Copthorne on Durham Street was about 14 storeys with about 170 rooms, he said.
"If a building is not going to be economically viable then developers aren't going to build it," he said.
"The average room size is 25-30 square metres and the first couple of floors will be public areas anyway. So you go up two storeys before you can even start putting in hotel rooms."
- NZ HERALD ONLINE