Sky City punts on second hotel

By SIMON HENDERY

Sky City Entertainment Group, which runs the Auckland and Hamilton casinos, plans to spend $75 million building a 14-level, five-star hotel above the convention centre it is constructing in central Auckland.

The 320-room hotel is expected to be open by late 2004, a year after the eight-level, $60 million convention centre is due to be completed.

The convention centre which will cater for conferences of up to 1500 delegates is being built on land between Albert and Federal Sts, across the road from Sky City's existing casino and hotel complex.

Sky City managing director Evan Davies said the new hotel was needed to provide accommodation for the convention centre because the company's existing 344-room hotel was close to capacity.

He said the company expected the hotel and convention centre to increase revenue for the complex's casinos, restaurants and the Sky Tower.

An airbridge will link the hotel and convention centre to the Sky City complex.

The new hotel would cater for the corporate convention market and tourists, Mr Davies said.

"Tourism is forecast to continue strong growth, with visitor numbers to New Zealand expected to continue to strengthen.

"The new hotel will ensure we are able to capitalise on that growth and continue to target international tourists, which is one of Sky City Auckland's key markets."

Jennie Langley, chief executive of the large hotel operators' lobby group, Major Accommodation Providers, said she welcomed a new initiative, which would encourage high-spending tourists.

"Even at peak times Auckland accommodation is rarely full but hopefully, as the number of events and conferences spread throughout the year increases, the demand for quality facilities will lift the market as a whole," she said.

Sky City had asked the Auckland City Council to contribute to the cost of the convention centre, but in May the council rejected the company's joint-venture proposal on the grounds that the planned centre was not big enough to expand the convention business in Auckland.

An $80 million convention centre catering for 2500 delegates has been proposed for Aotea Square.