A new $120 million high-end hotel development is set to transform Hamilton's CBD. Photo / Hamilton City Council
A new $120 million high-end hotel development is set to transform Hamilton's CBD. Photo / Hamilton City Council
A new $120 million high-end hotel development for Hamilton is the latest evidence the city has shed its image as a cow town.
Auckland developer Templeton Group, the force behind several developments at Auckland’s Viaduct, is planning a multi-use space of at least 10 storeys, includinga food and entertainment precinct on the ground level - open to the riverfront area - with a new hotel, office space, and residential apartments above, in Hamilton’s CBD.
Local business and tourism leaders said the development was not only great news for the city but for the wider Waikato and proof of the region’s growth and potential.
Hamilton City Council signed a conditional agreement to sell the properties at 242-254 Victoria St, including the premises of restaurants Naughty Naan and Mexico, to Templeton Group this week.
Templeton Group has one year to complete all requests made by the council to make the agreement unconditional. Following this, it is anticipated the four-star development will take about four years to complete.
Hamilton Central Business Association general manager Vanessa Williams said she was “delighted” about the development as well.
Hamilton City Councillor Ewan Wilson (left), Mayor Paula Southgate and Templeton Group Development Director, Ben Jones. Photo / Hamilton City Council
“It’s great on so many levels. We don’t have a lot of high-quality accommodation options in Hamilton, there are only about four or five. This [new development] will be a drawcard to come and stay here.
“[The development] will also feature residential apartments right on the doorstep of our business community. It will be right in the center of town providing pride of place and boosting business confidence.”
“This is what we have advocated for over the past 10 years and we welcome this development with open arms. We... commend Templeton Group, for their foresight to see... the potential and growth in the visitor sector for Hamilton and the wider Waikato region.
“The Waikato is consistently seeing high visitor numbers, but we know business events and leisure group business has had to be turned away as there hasn’t been enough hotel capacity to accommodate them, which has been a great loss for the city.
“A new high-quality hotel will help to alleviate this issue, attracting more leisure and business travellers to the city, providing beds for our event attendees, conferences and domestic and international visitors, and boosting the Waikato’s tourism industry and supporting local businesses.”
Victoria on the River in Hamilton's CBD. Photo / Tom Rowland
Templeton Group is one of New Zealand’s largest developers who has led projects including the Auckland Viaduct with The Sebel Hotel, The Quays apartments, and the hospitality precinct with Oyster & Chop and Soul Bar, and more recently Abstract, a new hotel in Auckland with restaurant and spa.
The Hamilton development would be Templeton’s first project in the Waikato region.
Templeton Group founder Nigel McKenna said Hamilton’s economic development in recent years was part of the reason for his interest in a project here.
“Hamilton Kirikiriroa has experienced robust economic and population growth in recent years.
“We [also] know Hamilton and the wider Waikato [have] been experiencing a resurgence in visitor numbers. Investing in a high-quality hotel will continue to attract tourists and business travellers to the city, boosting the local tourism industry and supporting related businesses,” McKenna said.
The proposed development in Hamilton, set to be built across 2000sqm of land, is estimated to cost between $110 to $120 million.
Templeton Group founder Nigel McKenna.
It is part of Hamilton City Council’s vision for the Victoria on the River area which started in 2009 and aims to open up the city towards the Waikato River.
In 2018, the council purchased four strategic properies, 242-266 Victoria St, with $6.49 million from an allocated fund.
The properties at 242-254 Victoria St have now been allocated to Templeton Group for the new development.
The agreement signed by the council and Templeton Group followed a comprehensive tender process which began in 2021.
“The revitalisation of the central city and riverfront has begun to transform the city and we’re excited to contribute to that,” McKenna said.
Council will retain ownership of the land and building at 260-266 Victoria St, which will eventually be developed into an extension of the current Victoria on the River public space.
Hamilton Central Business Association general manager Vanessa Williams.
Hamilton City Council Strategic Property Manager, Nicolas Wells said Templeton would work with all tenants across the affected properties.
“[The tenants] have been aware of Council’s intention for the site over the past few years. For now, it is business as usual for them.”
Williams said she was confident there was sufficient availability in the CBD for the tenants to relocate.
Hamilton mayor Paula Southgate said she was proud to partner with Templeton Group.
Chairman of the council’s Economic Development Committee, Ewan Wilson said the development would help “rejuvenate” the central city.
“It’s exactly what we wanted and what we’ve been talking about for decades. This is transformational for Hamilton’s central city.
“[The development] is complementary to the existing Claudelands, Seddon Park, and FMG Stadium Waikato where we know there is demand for additional hotel-night stays.”
Danielle Zollickhofer is a multimedia journalist and assistant news director at the Waikato Herald. She joined NZME in 2021 and is based in Hamilton.
