Hilton to open its first South Island hotels

The Hilton Queenstown (R) and the Kawarau Hotel (L) will be situated on a waterfront site that offers panoramic views across Lake Wakatipu. Photo / Supplied

Hilton Worldwide has announced the signing of management agreements for two new Hilton Hotels & Resorts properties at the embattled $1 billion Kawarau Falls development and resort.

The development will comprise a 178-room five-star hotel to be named Hilton Queenstown and a four-star hotel, featuring 98 one-bedroom apartment-style rooms, to be known as the Kawarau Hotel, Managed by Hilton.

Both hotels are expected to be completed next year.

"We have identified Queenstown as a strategically significant location for Hilton Worldwide and we feel this project represents a development of the highest quality and world-class design," said Hilton Worldwide (Asia Pacific) president Martin Rinck.

The development is situated on a north facing, waterfront site that offers panoramic views across Lake Wakatipu to Queenstown.

Both properties are approximately seven kilometres to Queenstown's town centre and just over one kilometre from Queenstown Airport.

The development of the two hotels will expand the Hilton Hotels & Resorts portfolio in New Zealand to four properties.

Hilton Lake Taupo opened in November of last year and Hilton Auckland, situated on Princes Wharf, opened in 2001.

Rinck said Queenstown had spectacular scenery and was an "extremely popular year-round alpine and lake resort town".

"There has been an increase in demand in recent years for high quality, internationally-branded hotels there."

In addition to its many guest rooms, Hilton Queenstown will be home to two conference rooms, two boardrooms and a fully-equipped business centre.

A lakeside restaurant and bar and leisure facilities including an indoor heated swimming pool, a health club and a health spa, will also be features of the new hotel.

Both Hilton Queenstown and Kawarau Hotel, Managed by Hilton will be accessible from Queenstown's town centre by water taxi and ferry.