$4m Tauranga motel plan taking shape

PLACE TO STAY: The 42-room motel planned to open in Bethlehem in early 2016. IMAGE/SUPPLIED

A $4 million motel is planned to be built in Bethlehem to cash in on the area's retirement village boom and new birthing centre.

The 42-room motel will be sited beside the roundabout at the western entrance to the shopping centre, opposite the Z service station.

Developer Philip Lindsey of the Shellins Group said the motel, employing about a dozen people, was about to go to the market through Action Realty in Tauranga.

Research suggested a growing demand for such accommodation to service the neighbouring Bethlehem Birthing Centre, along with the demand from families visiting residents in the growing number of retirement villages, he said. "This motel is looking to fill this likely supply shortfall and keep visiting families close to their loved ones."

Recent earthworks raised the front of the motel site to be level with the footpath.

The total design and construction cost was about $4million and the project would provide local contractors, subcontractors and designers with a good commercial build opportunity. Shellins Group had not yet applied to the Tauranga City Council for approvals but the motel was "in line with the district plan".

Mr Lindsey said the motel was the group's prime focus and any other developments on the block, including a proposed service station, had to not detract from the site as a whole and particularly the motel.

His announcement comes as buildings continue to spring up in the vicinity of the roundabout, the latest construction effort centred on a $5million-$6million Aspire Health and Sports Club behind the Z service station. The newly opened Bethlehem Medical Hub and Birthing Centre, a Shellins Group development, was gearing up for the arrival of its first baby about the middle of this month.

Shellins Group has delivered more than 1000 hotel rooms and apartments in New Zealand.

Mr Lindsey moved to Tauranga from Auckland five years ago to enjoy the lifestyle and was looking to grow his work base here, while completing some offshore projects.