A new $6 million-plus redevelopment will see an international short-stay accommodation chain move into the Rotorua CBD - creating more jobs and activity in the city centre.
Rotorua's central business district is set to receive a significant boost with the development of 36 serviced apartments on Hinemoa St by local construction company R&B; Consultants. A Quest serviced apartment is not a long-term-stay accommodation provider but a short-stay option when visiting Rotorua.
The development will go ahead in the old State Insurance building opposite the former site of the Rotorua Post Office.
R&B; Consultants director Ray Cook said he recently bought the vacant four-level building and had entered into a long-term lease agreement with Quest Serviced Apartments, which operates more than 130 hotels in New Zealand, Fiji and Australia.
He said the stripping-out of the site would begin on Monday with the apartments ready to be opened by November 1 this year.
The building has 2400sq m of floor space and would accommodate 21 studio apartments and 15 one-bedroom apartments, with space for 22 off-street car parks.
Mr Cook said there was a 135sq m retail space on the ground floor that was yet to be tenanted but would suit a bar, cafe or any other type of retail enterprise.
He said the development was an exciting and important boost for Rotorua's central business district and the local tourism industry.
"Quest Serviced Apartments have an excellent reputation with domestic and international visitors as well as with travelling business people.
"This development will not only mean new jobs once the development is complete, but also a large number of local jobs during the construction and development phase as we strive to use local contractors wherever possible."
He said the development would include earthquake strengthening to ensure the building met the latest building requirements.
"I think Hinemoa St has been a bit quiet of late ... this sort of development will generate more activity in the area and encourage more businesses to move back in."
Mr Cook said he felt Rotorua's economy was beginning to pick up again.
"There's a bit more confidence out there and the district council have been proactive in attracting this development to the city."
Quest Serviced Apartments New Zealand chief executive Stephen Mansfield said the company's market focus was the corporate/government traveller staying for extended periods of three nights or more.
"The site is also well serviced by local amenities such as restaurants, entertainment, shopping and, of course, the Rotorua Convention Centre, all within easy walking distance so a car is not required."
He said Quest ran 32 similar operations throughout New Zealand.
"There will be the standard range of Quest supporting services such as onsite reception and management, daily room servicing, Wi-Fi internet, guest valet and dry cleaning, car parking and catering options."
Mr Mansfield said he expected the complex would achieve a 4.5 star Qualmark rating.
"With the addition of private spa decks in many of the studio and one-bedroom apartments we would expect the property would also appeal to those looking for a getaway in Rotorua," he said.
Rotorua Chamber of Commerce chief executive Roger Gordon said the chamber was pleased to see a new development going ahead in Hinemoa St and it would "inject another group of residents into the central business district".
"The high vacancy rate of both retail and commercial properties will only be reduced by bringing people back into the city."
He said the immediate and ongoing impact of the development on Rotorua's economy would be considerable.
R&B; Consultants was also responsible for the 200-room Novotel Hotel in 1996 and the 165-room Ibis Hotel in2005.
In the past 18 months R&B; Consultants has developed a new retail hub in Lake Rd, which includes a bakery, butcher and vegetable shop, and the company is now redeveloping the old Spences building on Fenton St to accommodate the Rotorua police during the construction of the new Rotorua police station.