Already Wylie Court looks much better under new ownership. Photo / Kelly Makiha
Already Wylie Court looks much better under new ownership. Photo / Kelly Makiha
A large motel on Fenton St that's been empty since May has been sold to a Chinese investor with Rotorua managers who intend to run the site for domestic visitors.
The new moteliers have already cleaned up the grounds of the 37-room motel, employed 10 new staff and opened thedoors to visitors to Rotorua.
The new managers, who did not want to be named, have many years of experience in the industry.
They told the Rotorua Daily Post they had taken the keys only a couple of days ago but were ready to make improvements and welcome visitors.
The new owner is Hotai Investment Ltd, whose only shareholder is Chinese investor Youren Wang. He also owns the Rotorua International Motor Lodge, which has recently been contracted by the Government to have transitional housing.
The managers said they would not be operating the thermal spas in the motels because they want their visitors to go out and spend money in Rotorua at places such as the Secret Spot and Polynesian Spa.
They said their intention was to use the park-like grounds for their visitors with picnics under the trees and a fun, safe and friendly environment delivered the old-fashioned way as moteliers had done previously.
Previous owner Te Arawa Group Holdings Ltd was approached for comment.
The Ministry of Housing and Urban Development, which has been involved in setting up transitional housing in Rotorua motels, confirmed it did not have an interest in Wylie Court.
"We're aware that Wylie Court has been sold but there is no work being done we're aware of to secure this for transitional housing."
The Government's public housing arm, Kāinga Ora, which tried to buy Wylie Court five months ago, lodged an application for a land-use change with Rotorua Lakes Council on July 29 for the Wylie Court site, where it intended to house up to 142 people in the motel's 37 units for transitional housing.
After news Kāinga Ora was considering the site, a petition was launched to stop the council from granting resource consent for the motel, with many locals fearful another motel would be used for social housing.
Save Our City signs were erected when Wylie Court's previous owners tried to sell the motel to Kāinga Ora. Photo / NZME
The petition called on the council to ensure all decisions around the zoning of Fenton St and the surrounding areas, including the Wylie Court proposal, were transparent and publicly notified.
Locals' fears stemmed from the area becoming run down and there being increased crime and disorder.
Kāinga Ora abandoned its plans in August. It never explained why, other than to say an agreement was not reached with the property owner.
Lobby group Restore Rotorua, which was set up as an incorporated society out of concern for residents now living among emergency and transitional housing motels in the Fenton St and Glenholme area, said it was thrilled with the new owner and managers' plans.
Restore Rotorua spokesman Trevor Newbrook said Wylie Court had been a popular, upmarket motel in Rotorua for many years and it would be great to have it operating as tourist accommodation again.
"It would be catastrophic for Rotorua if this very large, upmarket motel is used for transitional or emergency housing."
Newbrook said he had driven past the motel recently and seen the good work that was already being done to tidy it up and it had made a big difference already.
"This is really great news and I'm so pleased."
The sale is for a 2023sq m site and doesn't include the empty section of land that neighbours the motel complex. That land is still owned by Te Arawa Group Holdings Ltd.
The latest sale price is not known but property records show Te Arawa Group Holdings Ltd paid $5.115 million for it in April 2016. The property has a rating valuation of $6.59m.
