In recent months, Russell Property Group conducted a request for a proposal to establish a new contract to operate the hotel, he said.
Russell said hotel operator Event Hospitality and Entertainment, which operate Rydges, QT and Atura Hotels, and JUCY Snooze, was successful and would operate the property as a Rydges hotel from July 1 after it was refurbished.
He said the partnership was grateful for Holiday Inn's successful operation over many years, and for participating in what was a "very competitive" process.
"We were fortunate to have a number of excellent operators seeking to operate this property, and while we have decided to make a change, we are confident this will be a positive step for the hotel.
"We are working with all parties to ensure a smooth transition, including our desire to retain all our current staff at the hotel," he said.
Russell said the existing Rydges property on Fenton St will be rebranded as a stand-alone hotel under the "Independent Collection" by the Event brand, he said.
"Our partners at Event are experienced hotel operators with a proven track
record as our operating partners at QT Auckland and Rydges Wellington.
"We are confident that the transition can occur without disruption to operations, and without interruption to an attractive offering for visitors to Rotorua and users of the hotel."
NZ Super Fund Direct Investment Manager Hishaam Mirza said the establishment of a new operating contract for its Rotorua hotel offered "exciting opportunities" for the domestic tourism sector.
"This property remains a vital piece of tourism infrastructure, especially now with international tourism returning to New Zealand.
"We are confident the new operator will fit well with not only this operation but across the high-quality regional assets in this portfolio."
Event Hotels and Resorts general manager for New Zealand operations, Simon White, said
the team was excited to take on this new property.
"We are looking forward to bringing a fantastic new Rydges offering to Rotorua that can be enjoyed by locals, travelling Kiwis and international visitors alike.
"Rotorua is such a special place and we are excited to once again partner with NZ Hotel Holdings to bring quality accommodation, food and beverage, and conferencing options to the area.
